Woofun AI reports that a legislative petition on the South Korea National Assembly platform, registered on Aug. 17, has successfully mobilized support for a two-year delay in cryptocurrency taxation.

The campaign, which officially opened for signatures on Aug. 21 and runs until Sept. 20, rapidly accumulated 5,000 supporters, triggering a mandatory referral to the standing committee for review. Proponents argue that current corporate tax payments from major exchanges have dropped sharply, while retail investors—particularly younger voters—face significant unrealized losses. Imposing the levy now would burden these demographics and alienate a key electoral base, rather than generating meaningful state revenue.

This initiative continues a pattern of legislative postponements regarding crypto income tax in South Korea. Originally scheduled for January 2022, the implementation was first deferred to January 2023, then again to January 2025, and most recently to January 2027. The current proposal aims to extend this timeline further, pushing the effective date to 2029.

Woofun AI data shows the proposed tax structure levies a 20% capital gains tax on profits exceeding 2.5 million won (approximately $1,800) annually. The rapid signature growth highlights tensions between government revenue goals and the reality of a volatile market where tax infrastructure remains contested. Critics emphasize that taxing unrealized losses or marginal gains undermines investor protection and economic opportunities for younger demographics.

If the petition influences the standing committee, lawmakers may adjust the tax threshold, further delay the 2027 implementation date, or introduce favorable measures for long-term holders. This procedural milestone signals a broader shift in public sentiment, with crypto industry stakeholders and investor communities closely monitoring potential legislative responses.