South Korea's first-quarter crypto trading volume sharply declines by 28% year-over-year

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According to The Korea Times, although South Korea was once called the "Liquidity Gold Country" of the crypto market, the latest data shows that the retail-led crypto boom in the country is cooling significantly. TRM Labs data indicates that retail crypto trading volume in South Korea in the first quarter of this year was $69 billion, ranking second globally, but this figure has decreased by 28% year-over-year, making it the region with the steepest decline among major markets worldwide (the global average decline is 20%). Analysis points out that the primary reason for the sharp drop in trading volume is the strong inflow of funds into the domestic stock market. Driven by the AI wave, South Korea’s composite stock price index (KOSPI) soared approximately 196% over the past year, and the high returns and daily volatility diverted retail speculative capital that originally sought high risk and momentum returns. Additionally, Dispatch analyst Dessislava Ianeva noted that South Korea’s implementation of the "Virtual Asset User Protection Act" has significantly raised compliance thresholds for domestic exchanges, and currently only spot trading is permitted domestically, lacking the rich products such as derivatives, leverage, and pre-market trading available on overseas platforms.
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TreatEarningsAsSnacks
· 5h ago
Korean regulators have completely cut off derivatives, and the spot trading experience is indeed poor, so funds naturally flow toward places where leverage can be used.
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LatencyLullaby
· 5h ago
KOSPI has nearly doubled in a year—it's totally normal for retail investors to go trade stocks. Wait until there's a new narrative in the crypto space, then come back.
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GateUser-26f91b48
· 6h ago
Who would still play with crypto when the stock market is so hot?
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