South Korea’s cryptocurrency market experienced a sharp decline over the past year as investors redirected funds into the country’s stock market amid weaker digital asset sentiment.

Data submitted by the Bank of Korea revealed that crypto holdings among South Korean investors dropped from 121.8 trillion won, equivalent to roughly $83.3 billion, at the end of January 2025 to 60.6 trillion won, or around $41.4 billion, by the end of February 2026.

The figures highlighted one of the steepest annual declines recorded in the country’s digital asset sector in recent years.

Trading activity across South Korea’s five major cryptocurrency exchanges also weakened significantly during the same period.

Average daily trading volumes across…