Cryptocurrency flight: 160 trillion won in assets flowed out of South Korea

Author: Jay Jo, Source: Tiger Research, Translated by: Shaw Jinse Finance

Key Takeaways

• It is estimated that approximately 160 trillion won of crypto assets will flow into overseas CEXs by 2025, with transaction fee revenue also flowing overseas.

• The core driving factor is the asymmetry of investment opportunities. Overseas CEXs seize opportunities and obtain early profits through derivatives and pre-market trading.

• Simply blocking is not the solution. Capital may flow into regulatory blind spots. South Korea needs to allow innovation within a controlled framework.

1. South Korean Crypto Investors Shift to Binance

South Korea holds a unique position in the global cryptocurrency market. Over 10 million people invest in cryptocurrencies, representing approximately 20% of South Korea's total population, almost on par with the 14 million stock investors in the country.

Trading volume reflects this massive participation. According to cryptocurrency data analytics firm Kaiko, the trading volume of South Korean won cryptocurrencies is comparable to, and sometimes even surpasses, that of the US dollar among global fiat currencies.

Trading volume reflects this massive participation.

According to cryptocurrency data analytics firm Kaiko, the trading volume of South Korean won cryptocurrencies is comparable to, and sometimes even surpasses, that of the US dollar among global fiat currencies.

Trading volume reflects this massive participation.

Trading volume of South Korean won cryptocurrencies is comparable to, and sometimes surpasses, that of the US dollar among global fiat currencies.