South Korea is experiencing a significant rise in cryptocurrency adoption, as confirmed by data from the Bank of Korea. Over 15.59 million citizens now hold digital assets.
Surging Investments Following Global Events
Data from the Bank of Korea reveals a sharp increase in cryptocurrency investments, especially following key global events such as the U.S. presidential election. External economic and political factors appear to have influenced investor sentiment. By the end of November, 15.59 million South Koreans held accounts on the country's top five exchanges, representing a significant jump of 610,000 new investors from October's total of 14.98 million.
Market Expansion and Valuation Growth
The cryptocurrency market in South Korea has experienced unprecedented growth in recent months. Bitcoin prices surged from 105 million won in October to 135.8 million won by the end of November, contributing to a substantial rise in total market valuation. In November, the total value of digital assets held by South Korean investors reached 102.6 trillion won ($70.3 billion), nearly double October’s valuation of 58 trillion won ($39.7 billion).
Daily Trading Volume Rivals Stock Market
One of the most striking developments is the rapid growth in cryptocurrency trading volumes, which now rival those of traditional stock markets. In November, the average daily trading volume of domestic cryptocurrencies reached 14.9 trillion won ($10.2 billion), nearly equivalent to the combined trading volumes of South Korea’s benchmark stock indices KOSPI and KOSDAQ. Deposits on cryptocurrency exchanges also doubled, rising from 4.7 trillion won ($3.2 billion) in October to 8.8 trillion won ($6 billion) in November.
Despite the impressive growth in cryptocurrency adoption, South Korea faces regulatory and stability challenges. The much-anticipated crypto tax policy has been delayed until 2027 due to the lack of a unified regulatory framework.
