In a significant shift, over $110 billion has exited South Korea's cryptocurrency platforms, moving to offshore exchanges. The source reports that this trend is reshaping the local market landscape and raising concerns about the future of trading within the country.
Impact of Mass Outflow on South Korean Crypto Market
The mass outflow of funds has notably affected the depth of the South Korean crypto market. While trading volumes remain high, local exchanges are struggling with inflexible market structures that limit their ability to adapt to changing conditions and execute trades with precision.
Liquidity and Trading Conditions
This situation underscores a critical insight: deeper liquidity does not necessarily translate to better trading conditions, especially when execution costs increase. As traders seek more favorable environments, the challenges faced by South Korean platforms may prompt further shifts in the market dynamics.
Asian financial markets are currently facing volatility as regional currencies weaken due to recent U.S. sanctions on Venezuela's oil sector, contrasting with the outflow of funds from South Korea's crypto platforms. For more details, see read more.
