South Korea’s Crypto Exodus: Can Local Exchanges Survive?
In 2025, South Korea faced a massive capital flight from its cryptocurrency market. Over $110 billion left local exchanges like Upbit and Bithumb for foreign platforms. Why? Well, tight regulations limited trading options, pushing investors to seek more diverse products elsewhere. The question remains: how can these exchanges keep their investors amidst such challenges?
Regulations and Their Impact
South Korea boasts one of the most stringent regulatory frameworks for cryptocurrency, thanks to the Digital Asset Basic Act and the Virtual Asset User Protection Act. These laws impose heavy compliance requirements on local exchanges, restricting them mainly to spot trading. Investors, hungry for more options, have turned to offshore…
