South Korea witnesses significant growth in cryptocurrency adoption, with over 15.5 million residents holding digital assets, representing 30% of the population.
South Korea's Crypto Market Doubles
This surge is closely linked to increased market activity following US President-elect Donald Trump's pro-crypto policy announcements, which sparked optimism among investors. According to the Bank of Korea, by the end of November, total crypto holdings in the country reached 102.6 trillion KRW ($69 billion), nearly doubling from the previous month's 58 trillion KRW ($39 billion). Average crypto holdings per person also saw a significant rise from 3.87 million KRW ($2,655) in October to 6.58 million KRW ($4,400) in November. Daily trading volumes reached $10.2 billion, rivaling combined volumes of South Korea's main stock markets.
Delays in Crypto Taxation
It is important to note that South Korea's long-delayed cryptocurrency tax was once again postponed and is now set to take effect in 2027. Announced by the Democratic Party (DP), the largest faction in the National Assembly, after tense discussions with the People Power Party (PPP). The original deadline for implementation was scheduled for January 2022. The DP pointed out the need for more time to build a comprehensive framework for the tax and ensure effective regulation of digital assets. Critics argue that small crypto traders may be negatively affected by this delay.
Conclusion
The rapid growth of the cryptocurrency market in South Korea presents new opportunities while underscoring the need for strong regulatory measures to safeguard investors and ensure market stability, a challenge South Korean leaders currently face.
South Korea shows rapid growth in cryptocurrency adoption, yet there arises a need for strengthened regulation and a robust legal framework to protect investors.
