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The Korea Digital Asset Exchange Alliance (DAXA) has introduced new compliance standards requiring local cryptocurrency exchanges to invalidate API keys suspected of being improperly shared by users, thereby strengthening oversight of automated trading. The Financial Supervisory Service (FSS) stated that automated trading currently accounts for approximately 30% of trading volume in Korea’s cryptocurrency market. Under the new rules, exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax will enhance API monitoring, issue warnings upon detecting suspicious sharing behavior, require users to re-authenticate, and implement an IP allowlist mechanism to restrict API access to authorized addresses only.
According to Digital Asset, domestic virtual asset trading volume in South Korea has fallen to approximately 8% of KOSPI trading volume—less than one-tenth. Media statistics show that, as of May 26, the ratio of trading volume on Korean won-based exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) to KOSPI trading volume stood at just 8%. The report notes that South Korea’s virtual asset market has been weakening continuously since the second half of 2025; it declined sharply following a large-scale futures liquidation event in October 2025, while the KOSPI strengthened amid a semiconductor upcycle and supportive government policies. Additionally, according to CryptoQuant data, the Bitcoin Korea Premium indicator has been negative for most of the time since March, reflecting weak buying demand in the Korean market.
According to Odaily, the value of cryptocurrency holdings held by South Korean investors has more than halved over the past year, dropping from 121.8 trillion won at the end of January 2025 to 60.6 trillion won (approximately $41.4 billion) by the end of February 2026.Daily trading volume on the five major exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—fell from $11.6 billion in December 2024 to $3 billion in February 2026. Korean won deposits on these exchanges also decreased from 10.7 trillion won to 7.8 trillion won.Stablecoin holdings declined from 597 million units in December 2024 to 41 million units in February 2026.South Korean regulators plan to implement revised anti-money laundering rules in August, under which crypto transactions involving overseas exchanges or private wallets exceeding 10 million won will be automatically flagged as suspicious. Additionally, a 22% tax on crypto gains is set to take effect on January 1, 2027.
that, according to data submitted by the Bank of Korea to the National Assembly, the total value of crypto assets held by South Korean investors fell from 121.8 trillion won (approximately $83.3 billion) at the end of January 2025 to 60.6 trillion won (approximately $41.4 billion) at the end of February 2026, a decline of over 50% within a year. During the same period, the average daily trading volume on South Korea's top five exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—dropped from $11.6 billion in December 2024 to $3 billion in February this year. The total Korean won deposits on these exchanges also decreased from 10.7 trillion won to 7.8 trillion won, reflecting that some funds are flowing into the South Korean stock market.However, stablecoin holdings have remained relatively resilient. Data shows that South Korean stablecoin holdings peaked at $597 million in December 2024 before falling to $41 million in February this year, a decline significantly smaller than that of the broader crypto market.Additionally, South Korean regulators plan to implement stricter anti-money laundering rules in August, which will automatically flag as suspicious any transactions involving overseas exchanges or private wallets exceeding 10 million won. The Digital Asset Exchange Alliance (DAXA) has warned that this measure could drive users toward offshore platforms such as Binance.Meanwhile, the South Korean Ministry of Economy and Finance recently confirmed for the first time that a 22% tax rate on crypto gains will officially take effect on January 1, 2027. (Cointelegraph)
: South Korea's crypto industry has expressed strong concerns over proposed amendments to anti-money laundering (AML) regulations, arguing that the rules could impose excessive compliance burdens on Virtual Asset Service Providers (VASPs).According to Yonhap News Agency, the Digital Asset eXchange Alliance (DAXA), representing 27 VASPs including Upbit, Bithumb, Coinone, Korbit, and Gopax, submitted comments opposing the classification of all overseas virtual asset transfers exceeding 10 million won (approximately $6,800) as suspicious transaction reports.DAXA warned that this rule could cause the number of suspicious transaction reports from South Korea's top five exchanges to skyrocket from approximately 63,000 last year to over 5.4 million—an increase of about 85 times—severely impacting the efficiency of actual compliance execution. Furthermore, the industry also opposes a new obligation requiring exchanges to verify the accuracy of customer information, arguing it exceeds the scope of current legal authorization.South Korea's Financial Services Commission (FSC) and Financial Intelligence Unit (FIU) proposed the relevant amendments on March 30, which have now entered a public comment period, with final deliberation expected to be completed in July.Meanwhile, legal disputes between Korean exchanges and regulators over AML penalties continue. Multiple platforms are challenging previous business restrictions and fines through the courts, reflecting an escalating tension between regulatory tightening and the industry's execution capabilities. (Cointelegraph)