In the second half of last year, South Koreans withdrew around 90 trillion won ($60 billion) from local crypto exchanges to overseas platforms and private wallets - 14% more than in the first half. Despite the growth in users and deposits on domestic exchanges, their overall operating profit fell by 38% in the second half. The total capitalization of South Korea’s crypto market also decreased by 8%, while the average daily transaction volume dropped by 15%.
Regulators attribute these trends to the decline in the crypto market at the end of last year.
The South Korean government is working on tightening rules for crypto exchanges, including requiring them to compensate clients for losses, and plans to lift the ban on corporate investments in cryptocurrencies.
