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South Korean authorities assessed the extent of capital outflow to foreign cryptocurrency platforms., 2026/03/25 14:01:34
The Financial Services Commission (FSC) of South Korea reported that in the second half of last year, approximately 90 trillion won (around $60 billion) was withdrawn from South Korean crypto exchanges to overseas platforms and private wallets.
This marks a 14% increase compared to the first half of the previous year (78.9 trillion won, $52.5 billion). The regulator’s report suggests that traders may have been moving cryptocurrencies abroad to capitalize on price differences across various platforms.
Although the number of users on local exchanges rose by 3% since June 2025, reaching 11.1 million, and the total deposits increased by 31% to 8.1 trillion won ($5.4 billion), the overall profit of the exchanges has declined, according to FSC data. For the second half of 2025, the total operating profit of the 18 exchanges operating in the country was 380.7 billion won ($253.4 million), which is a 38% decrease from the figures recorded in January to June 2025, which stood at 617.8 billion won ($411.2 million).
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The FSC estimates that by the end of December, the total market capitalization of the cryptocurrency market in South Korea was 87.2 trillion won (approximately $58 billion), reflecting an 8% decrease from the first half of the year. The average daily trading volume for the second half was 5.4 trillion won ($3.6 billion), down 15% from the first half.
The regulator attributed the decline in trading volume and profitability of South Korean exchanges to a significant drop in the cryptocurrency market at the end of the previous year. Currently, Bitcoin is trading well below its historical peak of $126,080 reached in October, at around $71,000.
A few months ago, South Korean authorities began developing new, stricter regulations for crypto exchanges. Regulators aim to require exchanges to compensate clients for losses even in the absence of fault on the part of the exchanges. Earlier this year, the FSC pledged to lift a nine-year ban on corporate investments in cryptocurrencies, which was implemented in 2017 to enhance anti-money laundering measures.
