According to Cointelegraph, South Korean investors' cryptocurrency holdings plummeted by over 50% from 121.8 trillion won (approximately $83.3 billion) in January 2025 to 60.6 trillion won (approximately $41.4 billion) by February 2026. Daily trading volumes across the five largest exchanges declined from $11.6 billion to $3 billion over the same period, driven by falling crypto prices and capital outflows to the stock market.
Regulatory pressures are intensifying, with authorities planning to implement new anti-money laundering rules in August requiring automatic flagging of cross-border crypto transactions exceeding 10 million won. A 22% capital gains tax on crypto profits is also confirmed to take effect on January 1, 2027.