South Korea reports $60B crypto outflows

TLDR

South Koreas regulators say about 60 billion dollars in crypto left domestic exchanges in just six months, highlighting a major shift in where Korean traders operate.

1. Official data shows roughly 60 billion dollars exited Korean exchanges in H2 2025, as part of around 110 billion dollars in crypto-related outflows for the year.
2. Most of this money moved from local spot-only venues to overseas derivatives platforms like Binance, driven by regulation and an impending 20 percent crypto tax.
3. Domestic liquidity and profits have fallen sharply, so the key things to watch are tax reform, any easing of trading restrictions, and whether capital keeps rotating into equities instead of crypto.

Deep Dive

1. How Big The Outflows Are

South Koreas Financial Services Commission (FSC) reported that crypto outflows from local exchanges reached about 90 trillion won, roughly 60 billion dollars, in the second half of 2025, up 14 percent from the first halfs 52.5 billion dollars of outflows. This is capital moving off Korean exchanges to foreign platforms and private wallets, not necessarily leaving crypto entirely, according to FSC data summarized by crypto outflows as profits fall.

Across 2025, various reports put total crypto related capital flight around 110 billion dollars, underlining that this is a structural, not one off, shift in where Korean users hold and trade digital assets, as noted in a regulatory backlash overview.

2. Why The Money Is Leaving

Domestic exchanges such as Upbit and Bithumb are legally limited to spot trading, while many Korean traders want futures, leverage and hedging tools. FSC and market reports say a large share of outflows went to overseas derivatives venues, with about 57 percent of total 2025 outflows directed to Binance and Korean users now making up a sizeable slice of its futures volume, per the same regulatory backlash overview.

On top of that, South Korea had planned a 20 to 22 percent tax on crypto gains above a relatively low threshold, which pushed investors to move assets offshore ahead of the 2027 start date. Lawmakers have already delayed the tax to 2027 and are debating scrapping it entirely in response to the estimated 110 billion dollars in capital flight.

3. Market Impact And What To Watch

Even as user accounts and deposits on Korean exchanges grew, operating profits fell about 38 percent in the second half of 2025, with average daily trading volume down around 15 percent, according to the FSC based outflows report. That is fees and liquidity migrating offshore.

On chain data also shows stablecoin balances on the top five Korean exchanges dropping about 55 percent, from 575 million dollars to roughly 188 million, as some traders cashed out dollar stablecoins and rotated into domestic stocks, helped by tax advantaged repatriation products, as detailed in a stablecoin liquidity study.

Confidence: high because multiple official and independent reports all cite the same FSC statistics and magnitudes.

Conclusion

South Koreas 60 billion dollar half year crypto outflow figure reflects capital escaping domestic constraints, not a simple collapse in interest. Tight spot only rules and a looming crypto tax pushed traders offshore and into stocks, hurting local exchange liquidity and profits. How Seoul resolves tax policy and market structure will shape whether Korean capital returns to domestic crypto venues or remains a powerful but mostly offshore force in global markets.