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South Korea Now Has 6.5 Million Active Crypto Traders: Report

In this post:

  • South Korea now boasts 6.45 million active crypto traders, making up 12.9% of the total population.
  • Average daily crypto transactions in South Korea rose to KRW 3.6 trillion, a 24% increase from earlier in the year.
  • Market capitalization surged by 53% to reach KRW 43.6 trillion by year’s end.
  • Despite the growth, virtual asset price volatility remains high at 61.5%, signaling the need for cautious investment.

South Korea’s involvement in cryptocurrency has reached new heights, with 6.45 million active traders now engaged in the market.

This figure represents 12.9% of the entire population, highlighting the widespread adoption of cryptocurrencies within the country.

A Surge in Trading Activity

The latest data from the Financial Services Commission (FSC) indicates a significant uptick in cryptocurrency transactions. Over the past year, the average daily transaction size grew by 24%, reaching KRW 3.6 trillion.

This increase is part of a broader trend that saw market capitalization expand by 53%, hitting KRW 43.6 trillion by the end of the year. Furthermore, deposits in won have also seen a rise of 21%, totaling KRW 4.9 trillion.

These statistics highlight a strong recovery in investment sentiment, particularly in the second half of the year, following earlier declines.

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Cryptocurrency trading in South Korea is not just growing but also changing. The number of new listings on the won market has soared by 70%, although the coin market experienced a massive increase in trading suspensions, up by 42%.

This dynamic change has led to a slight reduction in the total number of stocks by 3.5%, with the number of uniquely listed cryptoassets dropping by 9.3%.

Regulatory Changes in South Korea

Despite the positive growth in trading figures, the crypto market remains volatile, with price fluctuations still marked at 61.5%.

The amount of cryptoassets transferred to reporting businesses, following the travel rule, has risen sharply by 57%, reflecting increased regulatory compliance and investor activity.

The regulatory situation is also tightening. Following the collapse of the TerraUSD stablecoin, a tragedy linked to South Korean native Do Kwon, there has been a pronounced shift towards stricter oversight. Starting from July, the new Virtual Asset User Protection Act will be enforced.

This legislation aims to introduce tougher measures on exchanges and increase penalties for malpractices, ensuring a safer trading environment for investors.

Crypto Shows Resilience

This period of regulatory adjustment comes at a time when South Korea’s crypto market has shown substantial resilience and growth.

The number of small investors holding cryptocurrencies under $734 has reached 4.55 million, a testament to the broadening base of everyday citizens participating in this digital economy.

Related: SOUTH KOREA’S ECONOMY BATTLES SHRINKFLATION

In light of these developments, the number of crypto business operators announcing closures has risen, prompting a call for vigilance among investors.

The current market conditions and regulatory framework are setting the stage for a more structured and secure cryptocurrency trading environment in South Korea.

The recent pledge by the nation’s major political party to facilitate access to US Bitcoin ETFs for Koreans also mirrors the growing political and economic integration of cryptocurrencies into mainstream acceptance.

DisclaimerThe information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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