BlockBeats News, May 22nd. A petition in South Korea to abolish the 22% cryptocurrency investment income tax has surpassed 50,000 signatures, meeting the criteria for review by the National Assembly's Financial and Economic Committee. The tax plan is set to take effect in January 2027. Petitioners criticize the tax for imposing a much higher tax burden on crypto assets compared to other asset classes, increasing investor reporting obligations, and restricting the wealth accumulation opportunities for the younger generation. The current number of petition signatures has exceeded 52,000.

The petition points out that imposing a high 22% tax on crypto could lead to industry contraction, capital and talent outflow, and long-term damage to South Korea's position as a cryptocurrency hub in the Asia-Pacific region. Despite South Korea's cryptocurrency ownership rate reaching 32% in March 2025, the total holdings and trading volume saw a significant decline between 2025 and 2026. Coupled with South Korea's strict AML/KYC regulations, this further accelerated investor exodus. The petition urges the South Korean government to avoid causing greater harm to the crypto ecosystem for short-term tax revenue goals.