Korea’s Retail-Dominated Crypto Market Faces Concentration Risks

[etfs]

The Bank of Korea is raising concerns about concentration risks in the country’s crypto market, where retail investors dominate almost entirely. Data shows the top 10% of investors accounted for over 91% of total trading volume between 2024 and mid-2025, increasing the risk of price distortion and sudden liquidity shocks.

Strict regulations that exclude foreign traders and limit corporate participation have left Korea without professional market makers. The result has been fragile liquidity conditions, highlighted by sharp stablecoin price dislocations during periods of market stress.

[Capybara_Capybara]

Top-heavy liquidity is always fragile.

[The_Walking_Dead]

Retail dominance cuts both ways.

[Revenant]

No market makers = sharp dislocations.