Korean investors' crypto asset holdings shrink over 50% in a year, funds accelerate flow into stock market

Odaily Planet Daily News According to data submitted by the Bank of Korea to the National Assembly, the value of crypto assets held by 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, shrinking more than 50% within a year. During the same period, the average daily trading volume on South Korea's five major exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—also dropped from $11.6 billion in December 2024 to $3 billion in February this year. The amount of Korean won deposits on these exchanges decreased from 10.7 trillion won to 7.8 trillion won, reflecting that some funds are flowing into the Korean stock market.

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

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

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