Korean investors' crypto asset holdings shrink by over 50% in one year, capital flows accelerate into stock market

Odaily Planet Daily News According to data submitted by the Bank of Korea to the National Assembly, the scale of crypto assets held by Korean investors dropped from 121.8 trillion won (approximately 83.3 billion USD) at the end of January 2025 to 60.6 trillion won (approximately 41.4 billion USD) at the end of February 2026, shrinking by over 50% in one year. During the same period, the average daily trading volume on Korea's top five exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—also fell from 11.6 billion USD in December 2024 to 3 billion USD in February this year. Meanwhile, the amount of Korean won deposits on exchanges decreased from 10.7 trillion won to 7.8 trillion won, reflecting part of the capital flow towards the Korean stock market.

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

Additionally, 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 Joint Association (DAXA) in Korea has warned that this measure could push users towards overseas platforms like Binance.

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