“While South Korean financial officials acknowledged the need for new rules, disagreements over stablecoins delayed a broader crypto framework.”, — write: www.coindesk.com
The regulatory framework has been slow to evolve. In December, the long-awaited Digital Asset Basic Act (DABA), a sweeping framework meant to govern crypto trading and issuance, was delayed due to disagreements among regulators over stablecoin issuance. The Virtual Asset User Protection Act, which came into force in 2024, does not address market structure issues such as leverage or derivatives trading.
The regulatory gap raised concerns among market participants that Korea’s centralized crypto exchanges (CEXs) are increasingly unable to compete with offshore platforms offering more complex trading products.
“The number of South Korean investors holding large sums in overseas cryptocurrency exchange accounts has more than doubled in a year, reflecting both the global market’s resurgence and growing frustration with South Korea’s restrictive trading environment,” Korean news agency Aju Press reported in November.
The research found that cryptocurrency has become a primary investment asset in South Korea, with investor numbers rising to 10 million and exchanges such as Upbit and Bithumb generating revenues in the trillions of won.
Growth, however, is stagnating, even as Korean investors continue to trade crypto actively and increasingly turn to foreign-based platforms such as Binance and Bybit, according to the report.
The report said the main reason Korean investors are moving funds offshore is the gap in investment opportunities, as South Korea prohibits domestic exchanges from offering crypto derivatives to retail traders.
“Domestic CEXs face strict regulations that limit them to spot trading, while foreign CEXs fill this gap with more complex products, including leveraged derivatives,” it said.
KuCoin captured a record share of centralized exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the broader crypto market.
- KuCoin recorded over $1.25 trillion in total trading volume in 2025equivalent to an average of roughly $114 billion per monthmarking its strongest year on record.
- This performance translated into an all-time high share of centralized exchange volumeas KuCoin’s activity expanded faster than aggregate CEX volumeswhich slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly spliteach exceeding $500 billion for the year, signaling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activityreinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activityindicating structurally higher user engagement rather than short-lived volume spikes.
View Full Report
The company is selling the site to the Sympatheia Power Fund, managed by Singapore-based Hawksburn Capital.
- Bitcoin miner Bitfarms is set to exit Latin America with the sale of its site in Paso Pe, Paraguay.
- Bitfarms will receive $9 million upfront and up to $21 million over the subsequent 10 months based on certain payment milestones.
- The deal follows Bitfarms’ sale of a site in Yguazú, Paraguay to bitcoin mining company Hive Digital Technologies just under a year ago.
Read full story