South Korean Crypto Complaints Skyrocket 1,014% in 2025 as Regulatory Scrutiny Intensifies

South Korea’s Financial Supervisory Service reported a 1,014% surge in crypto-related complaints in 2025, driven largely by exchanges failing to honor API-trader promotional benefits. The FSS logged 4,491 virtual-asset complaints versus 403 in H2 2024, even as total complaints rose 10.4% to 128,419. The spike has prompted intensified regulatory scrutiny and likely new guidance on exchange promotions, disclosures and grievance processes. Market impact: heightened regulatory risk and deteriorating retail investor confidence in domestic platforms could pressure trading activity and liquidity for crypto (including Bitcoin), prompt stricter exchange compliance costs, and influence global policy discussions.