South Korea has emerged as a global leader in cryptocurrency adoption, with over 15.59 million citizens—more than 30% of the nation’s population—now holding digital assets.
Surging Investments Following Global Events
Data from the Bank of Korea reveals a sharp increase in cryptocurrency investments, particularly following key global events, such as the U.S. presidential election. External economic and political factors appear to have played a role in shaping investor sentiment. By the end of November, 15.59 million South Koreans held accounts across the country’s top five exchanges: Upbit, Bithumb, Coinone, Korbit, and GOPAX, marking a rise of 610,000 new investors from the previous total of 14.98 million in October.
Market Expansion and Valuation Growth
The cryptocurrency market in South Korea has experienced unprecedented growth in recent months. Between October and November 2023, Bitcoin prices surged from 105 million won to 135.8 million won, contributing to a significant 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). Average holdings per investor also increased, from 3.87 million won ($2,655) in October to 6.58 million won ($4,777) in November.
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, the KOSPI ($6.8 billion) and KOSDAQ ($4.7 billion). 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.
While the rapid growth of cryptocurrency adoption is a promising sign of innovation, it also brings regulatory and stability challenges. Establishing clear and consistent guidelines is considered crucial for maintaining market stability and protecting investor rights.
