Under Strict Regulations in Korea, Over $110 Billion in Crypto Assets Flows Out Overseas as Local Exchanges Struggle

**Crypto Funds Flowing Out of South Korea Hit $110B Last Year Amid Regulatory Gaps** Per a joint report released Friday by Coingecko and Tiger Research, South Korean investors transferred over 160 trillion won ($110 billion) from domestic crypto exchanges to overseas platforms in 2023—driven by domestic regulatory curbs. As one of Asia’s most active digital asset markets, South Korea has a relatively outdated regulatory framework. The long-awaited *Digital Assets Basic Law (DABA)*—landmark legislation intended to comprehensively regulate crypto trading and issuance—was delayed last December amid disagreements between regulatory bodies over stablecoin issuance. The *Virtual Asset User Protection Law*, scheduled to go into effect in 2024, fails to address market structural issues like leveraged trading or derivatives. Regulatory gaps have sparked concerns: market participants fear South Korea’s centralized crypto exchanges are increasingly struggling to compete with overseas platforms offering more advanced trading products. South Korean outlet Aju Press reported in November: “The number of South Korean investors with large accounts on overseas crypto exchanges has more than doubled in a year—reflecting both the global market’s rebound and investors’ mounting frustration with South Korea’s restrictive trading environment.” The research found crypto has become a major investment asset in South Korea (10 million investors total), with exchanges like Upbit and Bithumb generating tens of trillions of won in revenue. However, domestic exchanges’ growth has stagnated as investors shift to overseas platforms like Binance and Bybit.