Korean Investors’ Crypto Holdings Shrink Over 50% in a Year, Funds Accelerate Shift to Stock Market

Odaily reports that, according to data submitted by the Bank of Korea to the National Assembly, the total value of crypto assets held by South Korean investors fell from 121.8 trillion won (approximately $83.3 billion) at the end of January 2025 to 60.6 trillion won (approximately $41.4 billion) at the end of February 2026, a decline of over 50% within a year. During the same period, the average daily trading volume on South Korea's top five exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—dropped from $11.6 billion in December 2024 to $3 billion in February this year. The total Korean won deposits on these exchanges also decreased from 10.7 trillion won to 7.8 trillion won, reflecting that some funds are flowing into the South Korean stock market.

However, stablecoin holdings have remained relatively resilient. Data shows that South Korean stablecoin holdings peaked at $597 million in December 2024 before falling to $41 million in February this year, a decline significantly smaller than that of the broader crypto market.

Additionally, South Korean regulators plan to implement stricter anti-money laundering rules in August, which will automatically flag as suspicious any transactions involving overseas exchanges or private wallets exceeding 10 million won. The Digital Asset Exchange Alliance (DAXA) has warned that this measure could drive users toward offshore platforms such as Binance.

Meanwhile, the South Korean Ministry of Economy and Finance recently confirmed for the first time that a 22% tax rate on crypto gains will officially take effect on January 1, 2027. (Cointelegraph)