South Korean lawmakers are set to review a proposal to abolish the country’s planned crypto tax after a national petition crossed the required 50,000-signature threshold. The petition was referred to a National Assembly committee just 8 days after submission.

The tax is scheduled to take effect in January 2027 and would apply a 22% levy on crypto gains above 2.5 million won, roughly $1,650–$1,800 depending on exchange rates. The total rate includes a 20% income tax and a 2% local tax.

The petitioner argues that taxing crypto gains while easing taxes on traditional investments such as stocks and bonds creates an unfair burden for digital-asset investors. The motion also points to persistent fraud risks, weak investor protection and the high volatility of crypto markets as reasons why the current framework is premature.

South Korea’s crypto tax plan has already been delayed three times amid disputes over fairness, reporting infrastructure and market readiness. The petition does not automatically cancel the tax, but it forces a formal political review and increases pressure on lawmakers to reconsider how the country should tax and regulate digital assets.