last year as people sent their funds out of the country. More than one hundred sixty trillion won was moved from local crypto platforms to foreign platforms. This happened mainly because of strict rules at home.
South Korea is one of the most active crypto markets in Asia. Many people trade digital assets every day. However the rules that guide this market have not kept up with demand. Because of this many investors looked for better choices outside the country.
A major reason is the delay of a new crypto law called the Digital Asset Basic Act. This law was expected to bring clear rules for trading and issuing digital assets. It was delayed because regulators could not agree on how stable coins should be handled. As a result there is still no full system in place.
Another law started in twenty twenty four to protect users. While this law helps with safety it does not cover how markets should work. It does not allow things like leverage or future based trading. This leaves local platforms with very limited options.
Domestic crypto platforms in South Korea are only allowed to offer simple spot trading. This means users can only buy and sell assets directly. Many investors want more choices. Foreign platforms allow advanced trading features that local platforms cannot provide.
Because of this gap many Korean investors opened accounts overseas. Reports show that the number of people holding large amounts of crypto on foreign platforms has more than doubled in one year. This shows rising frustration with local limits.
Crypto has become a major investment choice in South Korea. Around ten million people now invest in digital assets. Local platforms still earn large amounts of money each year. But growth is slowing down.
Even though trading activity remains strong many users are slowly shifting away. They continue to trade but send more funds abroad. The main reason is simple. They want access to more tools and more freedom.
Market experts say this trend could weaken the local crypto industry over time. If rules do not change domestic platforms may fall behind. Foreign platforms will keep attracting Korean users.
Investors and companies are now waiting for clear action from regulators. Many hope the delayed law will move forward soon. Without change more money may continue to flow out of the country.
South Korea now faces a key choice. It can update its rules to match global markets or risk losing its strong position in crypto. The decisions made next will shape the future of digital assets in the country.