A semiannual survey released on Oct. 1 by the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service found that South Korea’s domestic crypto exchanges posted sharp declines across key metrics in the first half of 2026. The market value of crypto assets on local exchanges fell 33% to KRW 58.9 trillion, while average daily trading volume dropped 44% to KRW 3.1 trillion. Combined operating profit at exchanges plunged 78% to KRW 81.6 billion.
The report also showed a shift in user composition. Investors in their 40s became the largest age group, and the number of users holding less than KRW 1 million in assets rose 4% to 8.63 million. The survey covered 26 registered virtual asset service providers.
Regulators also flagged risk in smaller tokens. Among 234 tokens traded on only one exchange, 93 had a market capitalization below KRW 100 million. The agencies said those assets face liquidity risk and the potential for extreme price swings. The report added that the maximum drawdown for crypto assets on exchanges reached 69%, above the 55.1% recorded by the KOSPI and the 31.8% seen in the KOSDAQ over the same period.
South Korea’s domestic crypto market contracted sharply in the first half of 2026, according to a semiannual survey released on Oct. 1 by the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service.
The survey found that the market value of crypto assets held on local exchanges fell 33% to KRW 58.9 trillion. Average daily trading volume dropped 44% to KRW 3.1 trillion, while combined operating profit at exchanges plunged 78% to KRW 81.6 billion.
User mix shifted toward investors in their 40s
By age group, users in their 40s became the largest segment. The number of users holding less than KRW 1 million in assets rose 4% to 8.63 million. The survey covered 26 registered virtual asset service providers.
Regulators flagged drawdown and liquidity risks
The data also showed that the maximum drawdown for crypto assets on exchanges reached 69%. That was higher than the 55.1% recorded by the Korea Composite Stock Price Index, or KOSPI, and the 31.8% posted by the Korea Securities Dealers Automated Quotations, or KOSDAQ, during the same period.
Regulators separately pointed to risks in tokens listed on only one exchange. Of 234 such tokens, 93 had a market capitalization below KRW 100 million. The agencies said those assets carry liquidity risk and the risk of extreme price volatility.
The item was published by Techub News and cited BeInCrypto.
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