TechFlow News, May 22: According to Cointelegraph, a petition in South Korea calling for the abolition of the proposed 22% tax on cryptocurrency investment gains has surpassed the 50,000-signature threshold, triggering a mandatory review by the National Assembly’s Committee on Finance and Economy. The petition currently has over 52,000 signatures. The tax policy is scheduled to take effect in January 2027. Petitioners argue that taxing crypto assets significantly more heavily than other asset classes will increase investors’ financial burdens, restrict upward mobility—particularly for younger generations—and potentially lead to industry contraction and capital and talent flight.
Meanwhile, South Korea’s cryptocurrency market continues to shrink: total crypto holdings have declined from approximately 121.8 trillion KRW (about $83.3 billion) in January 2025 to roughly 60.6 trillion KRW (about $41.4 billion) in February 2026. Daily trading volume across the country’s top five exchanges has also plummeted—from $11.6 billion in December 2024 to $3 billion.
