South Korea emerges as global crypto stronghold

South Korea has quietly positioned itself as one of the world’s leading hubs for digital assets, with cryptocurrency ownership cutting across demographics and wealth brackets. From wealthy investors accumulating Bitcoin (BTC) and Ethereum (ETH) to younger Koreans committing a significant share of their portfolios, crypto has become a mainstream part of the country’s financial culture.

Today, nearly one in five South Koreans owns cryptocurrency, with over 10,000 individuals holding balances that exceed 1 billion won ($710,000–$750,000).

Generational divides in crypto wealth

Data shows that crypto adoption spans generations. The largest share of high-value holders falls within the 50s age group at nearly 37%, followed by those in their 40s and 60s.

Yet the most striking figure comes from younger investors. South Koreans in their 20s, despite making up only 137 of the billionaire-won holders, boast the highest average balances at 2.69 billion won ($1.92 million). This trend highlights a generational willingness to treat crypto not as speculation, but as a primary investment vehicle.

Looming tax reforms could reshape incentives

For now, South Korea remains a crypto tax haven. Gains from digital assets are currently untaxed, unlike equity holdings above 1 billion won, which face a 20%–30% capital gains tax.

That advantage is set to end. After repeated delays, a 20% tax on annual crypto income above 50 million won ($35,900) will take effect in January 2026. The change could spark portfolio rebalancing, as investors reassess crypto’s appeal relative to taxed stock markets.

Market consolidation favors Upbit

The country’s exchange sector is consolidating around a single dominant player. Upbit, South Korea’s largest crypto exchange, controls 52% of the overall market and commands an even stronger 76% share among wealthiest investors with holdings above 1 billion won.

In total, 10.87 million South Koreans maintain crypto accounts, representing 20% of the population. Collectively, they hold over 111 trillion won ($82 billion) worth of digital assets.

Regulation balances oversight and innovation

South Korea’s policy approach blends strict oversight with openness to digital innovation. Authorities enforce anti-money-laundering (AML) and compliance rules but have avoided sweeping restrictions that would stifle the industry.

Taxation remains a key battleground. Initial proposals floated levies as high as 50%, but lawmakers ultimately compromised at 20%, bringing digital assets in line with capital gains treatment.

With the election of a pro-crypto president, momentum is building for new legislation covering stablecoins and exchange-traded funds (ETFs). Many investors particularly younger ones expect the next chapter of South Korea’s crypto story to center on institutional inflows, broader acceptance, and sustained growth.