South Korea's Crypto Holdings Plummet Amid Shift Towards Stocks

South Korea has witnessed a substantial decline in its cryptocurrency holdings over the past year, with a drop of more than half from $83.3 billion to $41.4 billion.

According to data submitted by the Bank of Korea, the value of crypto assets held on local exchanges decreased from 121.8 trillion won at the end of January 2025 to 60.6 trillion won by the end of February 2026. This significant drop in holdings is largely attributed to investors redirecting their attention towards the stock market.

The trading volume on major exchanges, including Upbit, Bithumb, Korbit, Coinone, and Gopax, has also witnessed a sharp decline. The daily trading volume fell from $11.6 billion in December 2024 to around $3 billion in February, indicating reduced activity among retail traders.

The introduction of stricter Anti-Money Laundering (AML) checks and the potential implementation of a crypto tax by 2027 may add further pressure on local exchanges. Furthermore, stablecoins have seen varying trends, with holdings rising from $60 million to $597 million in December before falling back to $41 million in February.