South Korea’s Crypto Holdings Dive 50% as Investors Turn to Stocks
Over the past year, South Korean investors have notably cut back on their crypto holdings, with over half reallocating their assets to the stock market.
Summary
- The total value of crypto assets in South Korea dropped from $83.3 billion to $41.4 billion in the past year.
- Trading volume saw a significant decline across five major exchanges as investors shifted their focus to the stock market.
- Upcoming anti-money laundering (AML) regulations and a crypto tax set for 2027 may further challenge local exchanges.
Data from the Bank of Korea presented to Rep. Cha Gyu-geun shows that crypto holdings decreased from 121.8 trillion won (approximately $83.3 billion) at the end of January 2025 to 60.6 trillion won (around $41.4 billion) by the end of February 2026.
Daily trading volumes on platforms including Upbit, Bithumb, Korbit, Coinone, and Gopax also fell, from $11.6 billion in December 2024 to about $3 billion in February, reflecting a reduction in retail trading activity.
Shift Towards Stock Investments
This decline can be attributed to South Korean investors increasingly leaning towards equities amid a thriving stock market. Additionally, falling crypto prices have diminished the total asset value within local exchanges.
Moreover, won deposits at exchanges experienced a drop, falling from 10.7 trillion won at the end of 2024 to 7.8 trillion won, indicating a reduced appetite for cash in crypto transactions.
Notably, stablecoin holdings displayed contrasting patterns, rising from $60 million in July 2024 to $597 million by December, before reverting to $41 million in February.
As previously mentioned, stablecoins accounted for nearly half of South Korea’s crypto outflows in the first quarter of 2025, as many users moved funds to overseas exchanges. This trend has led regulators to closely monitor cross-border crypto activities.
Regulatory Pressures on Exchanges
In response to these developments, South Korea is preparing to enforce stricter AML regulations. Starting in August, any transaction over 10 million won associated with overseas exchanges or private wallets may be flagged as suspicious.
Additionally, Crypto.news reported that Samsung SDS has been assigned to create a token securities platform for the Korea Securities Depository in advance of the new tokenized securities framework expected to launch in February 2027. This suggests that while South Korea is enhancing its regulatory oversight of crypto, it is also nurturing a regulated blockchain market infrastructure.