Korean Crypto Exodus: Traders Flee Offshore for Bigger Liquidity

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South Korea’s crypto scene has decided that keeping all the money in one tiny, well-policed corner of the galaxy is so last season. Domestic exchanges report deposits dwindling, trading activity shrinking, and yet the user base seems to be multiplying like mislaid socks in a washing machine. It’s as if capital decided to go on a grand coastal tour, waving politely from shore to shore while leaving the local market with an impressive impression of a used napkin. 🧭🌐

Capital Flight Accelerating

Fnnews reports that KRW deposits on local exchanges have slumped by 42% to about ₩6.2 trillion compared with the end of last year. Daily average trading volume also slipped to ₩6.4 trillion, down 12% from the prior half-year. 💸

Domestic crypto market capitalization sits around ₩95.1 trillion, a 14% drop over the same period, while the global market cap fluttered down by about 7%. The universe, it seems, is tightening its belt and then tightening someone else’s belt for good measure.

Outflows of crypto reached ₩101.6 trillion overall, with ₩78.9 trillion routed to registered foreign operators – that channel rose by 4%. It’s as if a large portion of the wallet decided it preferred the view from offshore. 🌍➡️🏦

Kimchi Coins Face Listing Pressure

Exchanges are playing token pickiness like a particularly judgmental vending machine. The number of unique crypto assets listed domestically is 653, up by 55, but many of those assets trade only on a single platform. 🍿

There are 279 single-listing assets, and about 43% of them have market caps of ₩100 million or less. That level of concentration leaves small tokens exposed to sharp price swings and to delisting risk if liquidity dries up or regulators demand more dazzling disclosures. 🔍

User Growth But Smaller Trades

User accounts are up to about 10.77 million, an increase of 11% from the prior year-end. Yet average capital per user appears lower, given the fall in KRW deposits and daily volume. It’s like more people bought tickets to the big show but the popcorn budget got cut in half. 🍿💳

Average losses from peak prices have also deepened; the mean maximum drawdown rose to about 72% from 68% previously. In short: more people hold accounts, but less money is staying on local platforms and risk for small holders has increased. 🧗‍♀️💸

Regulatory And Banking Frictions Come Into Play

Based on reports, stricter rules and tougher bank partnerships are part of the story. Some exchanges struggle to keep real-name bank accounts or to meet new oversight criteria. It’s all very bureaucratic, which is apparently the fashionable way to keep up with the times without actually moving anywhere fast. 🏦🗂️

When fiat rails are weak, users turn to overseas venues that offer broader token lists and larger pools of liquidity. That has created an incentive for both traders and projects to look beyond the domestic market. The universe quietly whispers: there’s a bigger pond out there, and the fish might actually swim. 🌐💹

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2025-10-02 04:14