South Korea’s Crypto Holdings Plunge 50% as Investors Shift to Stocks
In the last year, South Korean investors have significantly reduced their crypto assets, with more than half of their holdings shifting to the stock market.
Summary
- The total value of crypto holdings in South Korea plummeted from $83.3 billion to $41.4 billion over the past year.
- There was a notable decline in trading volume across five major exchanges, as investors sought opportunities in the stock market.
- New anti-money laundering (AML) regulations and a crypto tax set for 2027 could further strain local exchanges.
Data from the Bank of Korea presented to Rep. Cha Gyu-geun indicates 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 such as Upbit, Bithumb, Korbit, Coinone, and Gopax also experienced a downturn, falling from $11.6 billion in December 2024 to roughly $3 billion in February, signaling diminished activity from retail traders.
Shift Towards Stock Investments
This drop can be attributed to South Korean investors increasingly favoring equities amid a robust stock market. Additionally, declining crypto prices have lowered the total asset value held on local exchanges.
Furthermore, won deposits at exchanges showed a decline, decreasing from 10.7 trillion won at the close of 2024 to 7.8 trillion won, reflecting a weakened demand for cash in crypto trading.
Interestingly, stablecoin holdings exhibited contrasting trends, rising from $60 million in July 2024 to $597 million by December, before dropping back to $41 million in February.
As highlighted earlier, stablecoins constituted nearly half of South Korea’s crypto outflows in the first quarter of 2025, as many users transferred funds to overseas exchanges. This shift has prompted regulators to closely monitor cross-border crypto transactions.
Regulatory Pressures on Exchanges
In response to these shifts, South Korea is set to implement stricter AML regulations. From August onwards, any transaction over 10 million won linked to overseas exchanges or private wallets may be deemed suspicious.
Additionally, Crypto.news reported that Samsung SDS is tasked with developing a token securities platform for the Korea Securities Depository ahead of the new tokenized securities framework slated to come into effect in February 2027. This indicates that while South Korea is enhancing its crypto oversight, it is simultaneously fostering regulated blockchain market infrastructure.