South Korean Investors Shift Billions to Overseas Crypto Platforms

The five major won-based exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—facilitated 2.76 trillion won in outbound transfers during June, while receiving only 2.20 trillion won in return. This persistent capital flight underscores a growing reliance on foreign platforms for services currently unavailable within South Korea, including leveraged crypto derivatives and tokenized real-world assets.

Lawmaker Lee Jong-wook has flagged these trends as a significant risk, warning that domestic investors are operating without adequate safeguards when utilizing high-risk foreign instruments. While the government considers a consolidated Digital Asset Basic Act to address these vulnerabilities, legislative progress remains slow. As domestic trading volumes on local exchanges continue to decline, the persistent shift toward offshore platforms highlights a widening gap between local regulatory constraints and the demand for sophisticated global financial products.