May 20, 2024
By Anjali Kochhar
South Korea has emerged as a cryptocurrency trading hotspot, with ordinary investors flocking to local digital-asset exchanges well before the worldwide crypto rush that pushed prices to historic highs in early 2024. According to a semi-annual report from the Korea Financial Intelligence Unit, active users on registered exchanges increased by 390,000 to 6.45 million by the end of 2023, accounting for more than 10% of the country’s population.
The report reveals that 99% of these users identified as individual investors, with nearly 60% falling within the age range of 30s and 40s. Notably, daily average crypto trading volume soared by 24% to 3.6 trillion won during the period, while the total value of crypto held by registered exchanges surged by 53% to 43.6 trillion won.
South Korea’s prominence in the global crypto landscape is underscored by the fact that the South Korean won surpassed the US dollar as the most traded currency against crypto-assets in the first quarter of 2024. Upbit, the dominant exchange in the country, has frequently ranked among the top five exchanges globally by trading volume.
“The increase in trading volume, market capitalisation, operating income of exchanges, and deposits in Korean won reflect the surge in crypto prices and the recovery of investor sentiment,” stated KOFIU. Additionally, the institution noted a rebound in the number of crypto trading users from the first half of 2023.
Despite the collapse of TerraUSD, a stablecoin created by South Korean native Do Kwon, enthusiasm for crypto remains high in the country. In fact, a major political party recently pledged to provide Koreans access to US Bitcoin ETFs during the parliamentary election held last month.
Looking ahead, South Korean regulators plan to implement the Virtual Asset User Protection Act in July, placing tough new rules on exchanges and stiffer punishments for wrongdoing in the industry.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
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