South Korea Crypto Holdings Drop Sharply as Investors Shift Toward Stock Market

South Korea’s crypto market has seen a major decline over the past year, with investor holdings falling by more than half as traders increasingly moved capital into traditional stock investments. The trend highlights changing investor behavior as crypto markets face weaker momentum and tighter regulations.

South Korea Crypto Market Sees Major Decline

Data from the country’s leading exchanges shows the value of crypto assets held by South Korean investors dropped from 121.8 trillion won ($83.3 billion) in January 2025 to 60.6 trillion won ($41.4 billion) by February 2026.

Trading activity also slowed sharply. Daily trading volume across major platforms, including Upbit, Bithumb, Korbit, Coinone and Gopax, declined to nearly $3 billion by February, down significantly from $11.6 billion recorded in late 2024.

Won deposits held on exchanges, often viewed as available investment capital, also decreased, reflecting weaker retail participation and reduced market confidence.

South Korea Crypto Regulations Raise Investor Concerns

Regulators are preparing stricter anti-money laundering measures expected to begin in August. Under the proposal, overseas crypto transfers above 10 million won would face automatic scrutiny.

Meanwhile, debate continues over South Korea’s planned 22% crypto tax scheduled to take effect in 2027, adding further uncertainty for investors and digital asset platforms.