South Koreans moved the equivalent of roughly $110 billion out of domestic crypto exchanges in 2025, a new joint report from Coingecko and Tiger Research shows — a sign that strict local rules are driving investors to offshore platforms.
The study found more than 160 trillion won flowed from South Korean centralized exchanges to foreign venues last year as traders chased products that local platforms are barred from offering. South Korea, one of Asia’s most active crypto markets, now counts about 10 million crypto investors, and major domestic exchanges such as Upbit and Bithumb continue to pull in revenues measured in the trillions of won. Yet overall growth is stalling as many users shift trading activity abroad.
Regulatory uncertainty is central to the exodus. While the Virtual Asset User Protection Act took effect in 2024, it does not tackle market-structure questions such as leverage or derivatives trading. Meanwhile, the wider Digital Asset Basic Act (DABA) — intended to set comprehensive rules for crypto trading and issuance — was delayed in December amid disagreements among regulators over stablecoin issuance. The regulatory gap, the report says, leaves domestic CEXs constrained to spot trading and unable to compete with offshore exchanges that offer leveraged derivatives and other complex products.
Korean media have documented the trend: Aju Press reported that the number of South Korean investors holding substantial balances on foreign exchanges more than doubled year-over-year, reflecting both a resurging global market and mounting frustration with domestic restrictions. Popular international platforms cited in the report include Binance and Bybit, which have become default alternatives for traders seeking a wider product suite.
The Coingecko–Tiger Research analysis frames this as a market opportunity lost: investors remain active and capital is plentiful, but regulatory limits on product offerings are pushing demand—and liquidity—out of the country. Policymakers face a choice between maintaining a conservative protection-first stance and adapting rules to retain trading activity and financial inflows.
Key takeaways
- 160 trillion won (~$110 billion) moved from South Korean exchanges to foreign platforms in 2025 (Coingecko & Tiger Research).
- South Korea has roughly 10 million crypto investors; major exchanges still generate revenue in the trillions of won.
- The Virtual Asset User Protection Act (2024) doesn’t address leverage or derivatives; the broader DABA framework was delayed over stablecoin disagreements.
- Domestic exchanges are largely limited to spot trading, while offshore platforms offer leveraged derivatives and other advanced products, prompting capital flight.
The findings underscore growing tension between consumer-protection-focused regulation and the market’s appetite for more sophisticated crypto instruments — a dynamic likely to shape South Korea’s crypto policy debates in the months ahead.
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