Korean investors' crypto holdings have shrunk by over 50% in a year, with funds accelerating towards the stock market

According to data submitted by the Bank of Korea to the National Assembly, the total value of crypto assets held by South Korean investors has dropped 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 five major exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—also fell from $11.6 billion in December 2024 to $3 billion in February this year. The amount of won deposits held on exchanges decreased from 10.7 trillion won to 7.8 trillion won, reflecting that some capital is flowing into the South Korean stock market.

However, stablecoin holdings have remained relatively resilient. Data shows that stablecoin holdings in South Korea peaked at $597 million in December 2024 before declining to $41 million in February this year, a drop significantly less severe than the overall crypto market.

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

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