A National Assembly petition calling for the deferral or abolition of the domestic cryptocurrency tax has gathered over 50,000 signatures and has been referred to the Strategy and Finance Committee, the responsible standing committee. With more than 58,000 signatures secured, the petition has met the requirements for formal review. This marks the beginning of a full-scale public discussion regarding the conflict between the government, political circles, and investors over the crypto tax proposal.

The currently planned tax scheme involves imposing a 22% tax (including local tax) on income from crypto asset transfers and lending that exceeds 2.5 million KRW. While the Ministry of Economy and Finance has maintained its original stance, preparing implementation guidelines with the National Tax Service for an January 2027 rollout, the political landscape remains tightly divided, with conflicting positions and legislative proposals emerging between the ruling and opposition parties.

The outcome of this petition is expected to be a significant turning point for liquidity in the domestic crypto market and investor sentiment. As the Korean crypto market accounts for a unique share of global retail trading volume, the introduction of a tax barrier could lead to sharp shifts in capital flow.

This comes at a time when a high-intensity regulatory framework is being applied to the market, including judicial pressure on major exchanges and coordination of overseas remittance regulations. It is essential to closely monitor the upcoming schedule of the National Assembly's Strategy and Finance Committee and the progress of the discussions on the amendment to the Income Tax Act regarding virtual assets.