South Korea once again attracts attention to cryptocurrencies in 2025, despite existing regulatory restrictions. At the same time, Kakaopay faces challenges related to stablecoin adoption.
Crypto Industry in South Korea
South Korea demonstrates renewed interest in cryptocurrencies, reviving older projects and stablecoin usage. Reports indicate that the country's exchanges logged over $663 billion in trades for the year, maintaining a penetration rate of 22.6% to 30% among users and retail traders.
Kakaopay's Challenges with Stablecoins
Kakaopay's shares saw a decline after reaching a peak in 2025, following warnings regarding its attempts to utilize stablecoins. Given new requirements tying stablecoins to commercial banks only, crypto companies will not benefit from potential advantages in launching the digital won.
Market Prospects for Cryptocurrencies in South Korea
Despite challenges, interest in stablecoins remains strong among Korean investors. For instance, shares of Circle (CRCL) became the most purchased foreign stocks in the country. South Korean traders also distinguish themselves with their selection of altcoins, contributing to market dynamics by supporting liquidity.
South Korea remains a key player in the crypto industry amid heightened interest in digital assets in 2025, despite regulatory challenges faced by Kakaopay.
