Headline: $110 billion flows offshore as South Korean crypto traders flee strict domestic rules South Korean crypto investors moved more than 160 trillion won (about $110 billion) from local exchanges to overseas platforms in 2025, a joint report from CoinGecko and Tiger Research revealed Friday. The mass outflow underscores growing frustration with Korea’s restrictive trading regime and a widening gap between domestic and foreign trading opportunities. The report says crypto has become a mainstream investment in Korea — the investor base has grown to roughly 10 million people and leading exchanges such as Upbit and Bithumb still generate revenues in the trillions of won. Yet overall growth is stalling as more retail traders migrate to offshore venues like Binance and Bybit to access products unavailable at home. Regulatory drift is at the heart of the shift. While the Virtual Asset User Protection Act took effect in 2024, it does not tackle market-structure questions such as leverage or derivatives trading. Efforts to create a comprehensive framework also stalled: the long-awaited Digital Asset Basic Act (DABA) was delayed in December amid regulator disagreements over stablecoin issuance. That regulatory gap has left domestic centralized exchanges (CEXs) largely limited to spot trading. The report notes this constraint directly drives capital outflows: “Domestic CEXs face strict regulations that limit them to spot trading, while foreign CEXs fill this gap with more complex products, including leveraged derivatives.” Korean media also reported that the number of investors holding large sums on overseas exchanges more than doubled over a year, reflecting both the global market’s rebound and growing dissatisfaction with Korea’s trading rules. Market participants warn the trend could weaken the competitiveness of Korea’s CEXs and siphon liquidity offshore unless lawmakers close policy gaps and clarify rules on derivatives and stablecoins. For now, investors are voting with their funds — and foreign exchanges are the beneficiaries. Read more AI-generated news on: undefined/news