Over the past year, South Korean investors have drastically reduced their cryptocurrency holdings, slashing them by more than half as capital flowed into the booming stock market. Data from the Bank of Korea, submitted to lawmaker Cha Gyu-geun, reveals that holdings plummeted from 121.8 trillion won ($83.3 billion) at the end of January 2025 to just 60.6 trillion won ($41.4 billion) by the end of February 2026. This represents a staggering 50% decline.
Daily trading volumes across major exchanges like Upbit, Bithumb, Korbit, Coinone, and Gopax also took a hit. The figure fell from $11.6 billion in December 2024 to about $3 billion in February, signaling a notable drop in retail trader activity. The decline coincided with a strong rally in equities, which drew investors away from crypto. Additionally, lower cryptocurrency prices further eroded the value of assets held on local platforms.
Won-denominated deposits at exchanges also saw a significant decrease, dropping from 10.7 trillion won at the end of 2024 to 7.8 trillion won, indicating weaker demand for crypto trading. In contrast, stablecoin holdings experienced an unusual trajectory, rising from $60 million in July 2024 to $597 million in December before falling back to $41 million in February. This pattern highlights shifting preferences among South Korean investors.
Regulatory pressures are also mounting. Starting in August, transactions exceeding 10 million won involving overseas exchanges or private wallets may be flagged as suspicious under new anti-money laundering (AML) rules. Furthermore, South Korea is advancing its regulatory framework with a planned tokenized securities system, set to launch in February 2027. Samsung SDS is building the Korea Securities Depository’s platform for this initiative, reflecting the country’s dual approach of tightening oversight while fostering regulated blockchain infrastructure. These developments could further influence local exchange dynamics and investor behavior going forward.