South Korea Crypto Investors Shrink 7% as Holdings Plunge 38%

South Korea’s retail crypto market continues contracting, with active investors falling 7% to 10.22 million as of February 2026 and total holdings dropping 37.5% to 69.9 trillion won (~$51B) per data from top exchanges. This amplifies an earlier plunge where holdings halved from 121.8 trillion won (~$83.3B) in January 2025 to 60.6 trillion won by end-February, alongside daily trading volumes slumping to $3B from $11.6B and won deposits declining from 10.7 to 7.8 trillion. Tighter AML rules from August and a 22% crypto tax in 2027 are fueling outflows and reduced activity.