South Korea's Cryptocurrency Outflows Reach $60 Billion in Second Half of 2025, Exchange Profits Plummet

Gate News reports that the Korea Financial Services Commission’s latest report shows that by the second half of 2025, the total outflow of cryptocurrencies from South Korea will be approximately $60 billion, mainly flowing to overseas platforms and private wallets, a year-over-year increase of about 14%. Regulators point out that these virtual assets may be transferred abroad for arbitrage and other activities.

Despite the capital outflow, the number of local exchange users in South Korea continues to grow, reaching a total of 11.1 million accounts by the end of last year, a 3% increase since June 2025. Deposits have increased even more, rising to about $5.4 billion. However, this growth has not translated into higher profits; the operating profit of 18 active exchanges in the second half of the year was about $253 million, down 38% year-over-year, indicating a significant decline in profitability.

The report also shows that South Korea’s total cryptocurrency market capitalization is expected to fall to around $58 billion by the end of 2025, an 8% decrease from the first half of the year. The average daily trading volume is $3.6 billion, down 15% year-over-year. Analysts believe that the decline in cryptocurrency prices is one of the main reasons for the decrease in trading volume and exchange profits. Bitcoin, Ethereum, and other major digital assets are still well below their historical peaks in October 2025, when Bitcoin reached approximately $126,080.

In the global market, geopolitical tensions in the Middle East and the hawkish stance of the Federal Reserve have affected market sentiment, keeping major cryptocurrencies relatively stable recently. Industry insiders say that the record high outflow of cryptocurrencies by South Korean investors may increase the use of overseas platforms and decentralized wallets, putting future profit models of local exchanges under pressure.

This report has attracted market attention, and investors and analysts will closely monitor the trends of Bitcoin and other major cryptocurrencies amid global fluctuations and geopolitical factors, as well as how the South Korean market will respond to ongoing capital outflow pressures.