South Korea Faces $115 Billion Crypto Capital Flight, Exposing Regulatory Dilemma
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 30 2025- Scale of Capital Outflow: According to a report by Tiger Research, South Korean investors are projected to transfer approximately 160 trillion won ($115.3 billion) to overseas crypto exchanges in 2024, highlighting a critical challenge for regulators due to the asymmetry of investment opportunities.
- Loss of Exchange Revenue: Major exchanges like Binance and Bybit are estimated to earn fee revenues of 2.73 trillion won ($1.97 billion) and 1.12 trillion won ($807 million) respectively from South Korean users, which will significantly reduce trading volumes and revenues for domestic exchanges like Upbit and Bithumb.
- Regulatory Response Strategy: The report advocates for a gradual approach by South Korean regulators, allowing regulated derivatives products and sandbox environments for new token listings to retain domestic capital and innovation, avoiding the “balloon effect” caused by outright bans.
- Far-Reaching Economic Impact: This capital flight not only hampers the growth and R&D capabilities of domestic exchanges but also poses challenges for the government in tracking and taxing offshore crypto profits, potentially affecting public finances and financial stability.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
