$60 billion left South Korean crypto exchanges in six months

• Capital outflows from South Korea reached $60 billion in the second half of 2025.
• At the same time, the number of crypto users increased.
• The total value of user deposits rose by 31%.

In the second half of 2025, the total volume of crypto assets withdrawn from local South Korean platforms reached 90 trillion won (around $60 billion), up 14% compared to the first half of the year. This was reported by the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU).

According to the regulator, the crypto market showed mixed dynamics: despite growth in user numbers and deposits, key financial metrics — trading volumes, exchange profits, and market capitalization — declined.

The main destinations for outflows were foreign crypto exchanges and private wallets. The FSC noted:

“Virtual assets are likely being transferred overseas for arbitrage and similar activities.”

More users, but a weaker market

Despite the capital outflows, interest in crypto remains strong in the country:

• number of accounts: 11.13 million (+3%);
• user deposits: 8.1 trillion won or over $5.4 billion (+31%).

However, these factors failed to support the market:

• average daily trading volume: 5.4 trillion won or over $3.6 billion (-15%);
• operating profit of exchanges: 380.7 billion won or about $254.2 million (-38%);
• total market capitalization: 87.2 trillion won or over $58.2 billion (-8%).

This imbalance was driven by the overall decline in crypto prices at the end of last year, which negatively affected trading activity and platform revenues.

It was also noted that the market peaked in October 2025, when Bitcoin reached an all-time high above $125,000.

Structural changes and new risks

The report also highlights changes in market structure:

• external crypto transfers increased by 6%;
• transactions subject to the Travel Rule decreased by 23%;
• transfers via whitelist (foreign platforms and wallets) increased by 13%.

At the same time, the custodial services sector experienced a sharp decline: assets under management fell by 58%, although the number of users increased by 3%. This is attributed to the drop in asset values held on these platforms.

Against this backdrop, authorities are preparing new rules for crypto investments. Companies are expected to be allowed to invest in digital assets, but restrictions may be imposed on popular stablecoins such as USDT and USDC.

See also: "Binance delists several altcoin pairs from spot trading: details"

#Crypto exchanges #Capitalization

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