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

According to data submitted by the Bank of Korea to the National Assembly, the total crypto assets held by Korean investors have fallen 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 by over 50% in one year. Over the same period, the average daily trading volume on 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. Meanwhile, the amount of Korean won deposits held at exchanges decreased from 10.7 trillion won to 7.8 trillion won, reflecting a partial shift of funds into the Korean stock market.

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

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

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