South Korea's cryptocurrency market experienced significant capital outflows in 2025, with $110 billion transferred to foreign exchanges due to domestic regulatory constraints. The delay in implementing the Digital Assets Basic Law has created a regulatory vacuum, prompting investors to seek overseas platforms. Despite 10 million South Koreans investing in cryptocurrencies, domestic exchanges like Upbit and Bithumb face stagnation, while platforms such as Binance and Bybit attract more users with advanced trading options. This trend raises concerns about the competitiveness of South Korean exchanges in the global market.