South Korean investors moved more than 160 trillion won ($110 billion) from domestic crypto exchanges to foreign platforms in 2025, according to a joint report by Coingecko and Tiger Research.
The outflows came as local exchanges faced strict regulations. Domestic platforms are limited to spot trading, while foreign exchanges offer more complex products such as leveraged derivatives.
A key reason is the delay of the Digital Asset Basic Act (DABA), a law meant to regulate crypto trading and issuance. Disagreements among regulators, especially over stablecoins, postponed its implementation. The existing Virtual Asset User Protection Act, in force since 2024, does not cover issues like market structure, leverage, or derivatives trading.
The report noted that crypto remains a major investment in South Korea, with around 10 million investors. Exchanges such as Upbit and Bithumb continue generating trillions of won in revenue, but growth is slowing.
Analysts said the regulatory gap is pushing investors offshore. “The number of South Korean investors holding large sums in overseas crypto accounts has more than doubled in a year,” Aju Press reported.
Foreign exchanges such as Binance and Bybit are benefiting from this trend. They provide products that South Korean platforms cannot offer, attracting local investors seeking more trading options.
The situation highlights a tension between strict domestic rules and a growing appetite for crypto, raising questions about South Korea’s ability to retain its investors.
