According to joint research cited in the media, around $110 billion – or around 160 trillion yen – left South Korean crypto platforms in 2025. Trading activity has not stopped. Instead, much of the money has moved to foreign exchanges, where more products and tools are available to ordinary investors.
The market limits fuel outflows
Reports have revealed that national rules largely limit local exchanges to spot trading. Many complex products remain off-limits to retail traders in Korea, which is why traders have turned to overseas platforms such as Binance and Bybit. The joint study by CoinGecko and Tiger Research is cited as the main basis for the $110 billion figure.
The banking sector and rules shape choices
According to a joint report from CoinGecko and Tiger Research, South Korean investors moved more than 160 trillion KRW (~$110 billion) in crypto assets from domestic exchanges to foreign platforms in 2025 due to local regulatory limits that limit CEXs largely to spot trading. Korean… pic.twitter.com/KrYgFurdsm
-Wu Blockchain (@WuBlockchain) January 2, 2026
South Korea has increased compliance and user protections in recent years. Laws designed to protect customers have been passed, such as the Virtual Asset User Protection Act of 2024, but companies and users say these laws have not created a comprehensive framework for broader marketplace services.
Lawmakers have debated the basic digital assets law, but delays have left gaps that some traders have found limiting. As a result, a growing share of cryptocurrencies held by Korea have migrated to wallets and platforms overseas.
Impact on fees and user behavior
Based on the platform’s analytics, Korean users’ fee revenue on foreign exchanges has become significant. Industry estimates put user fees at around ₩2.73 trillion for Binance and around ₩1.12 trillion for Bybit in 2025.
Reports also indicate that the number of Korean accounts with large overseas balances more than doubled year-on-year. Some capital was also transferred to self-custody wallets, showing that users are splitting bets between exchanges and private wallets.
Authorities stress the risks when money crosses borders. Regulators have focused on anti-money laundering controls and banking partnerships for crypto companies. Marketers, on the other hand, emphasize access. They want margin trading, derivatives and other services they can’t get at home. This tension between access and surveillance is at the heart of the movement of funds.
Commercial demand remains high
Volume trends suggest that Korean interest has not diminished, but shifted. Domestic platforms have handled significant spot trading, but overall demand appears to have flowed to foreign locations instead of disappearing. The $110 billion figure tracks transfers and investments, not asset losses. In other words, the value has been moved rather than erased.
Lawmakers in Seoul are reportedly working on broader rules, including provisions on stablecoins that many in the industry have called for. If new laws come and markets reopen to a broader set of services, some funds could return. But for now, many users continue to trade outside of Korea to access a broader menu of choices and tools.
Featured image from Unsplash, chart from TradingView
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