South Korean investors have seen a significant decline in cryptocurrency holdings, which dropped to approximately $41 billion by February 2026, halving from $83 billion a year earlier. This downturn is attributed to a major shift towards the stock market as prices for digital currencies fell.
According to data from the Bank of Korea, the value of crypto assets held by these investors fell from 121.8 trillion won at the start of 2025. Daily trading volumes at the major exchanges, including Upbit and Bithumb, also fell sharply from $11.6 billion in December 2024 to just $3 billion by February 2026.
While overall crypto activity has declined, stablecoin holdings surged to a peak of $597 million in December 2024, although they fell to $41 million by February 2026. The market is facing additional pressure as South Korea's financial regulators are set to implement stricter anti-money laundering rules starting in August, which could complicate compliance for exchanges.
Furthermore, a proposed 22% tax on crypto gains scheduled for 2027 is also fueling debate among industry stakeholders, intensifying concerns about the potential impact on the market.