South Korean crypto exchanges: 566K foreign accounts, 90 active

The root cause dates to 2021, when South Korea revised the Act on Reporting and Using Specified Financial Transaction Information. The changes required crypto traders to link their exchange accounts to verified Korean bank accounts held in their own name. For most foreign nationals, that is effectively impossible without a Korean resident registration number and an active domestic banking relationship.

The 566,352 accounts are largely relics of the period before those restrictions took hold, the report showed. They were opened when access was easier and have sat untouched since the regulatory environment shifted.

Industry observers said the rules have chilled foreign investment and pushed some domestic investors to offshore platforms, according to the report. The 30.36 billion won in dormant assets represents capital that cannot be used under current rules.

Rep. Park's report recommended revising the real-name banking requirement, either by creating alternative verification pathways for non-residents or by modifying the linkage rule itself. The report has been submitted to the National Assembly, where lawmakers are considering amendments, a person familiar with the matter said.