South Korean investors are withdrawing from crypto, and money is flowing into stocks. The total crypto assets of South Korean investors have decreased by more than 50% in just over a year, from $83.3 billion to $41.4 billion, while daily volume on major exchanges has also fallen from $11.6 billion to $3 billion. The main reasons are the drop in crypto prices and the shift of Capital towards the stock market. Legal pressure is also increasing as the government prepares to implement new AML regulations from August, under which crypto transactions exceeding 10 million won (approximately $6,900) involving foreign exchanges or personal wallets will automatically be flagged as suspicious transactions, plus a 22% tax on crypto profits expected to take effect from the beginning of 2027.
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