South Korea is rapidly strengthening its position in the cryptocurrency world, with over 30% of the population holding digital assets.
Surging Investments and Global Events Influence
Data from the Bank of Korea shows a sharp increase in cryptocurrency investments following major global events like the U.S. elections. By the end of November, 15.59 million Korean investors held accounts on the country's top five exchanges: Upbit, Bithumb, Coinone, Korbit, and GOPAX, an increase of 610,000 from October.
Market Expansion and Valuation Growth
The cryptocurrency market in South Korea has seen unprecedented growth in recent months. Bitcoin prices surged from 105 million won in October to 135.8 million won by the end of November. The total value of digital assets held by South Korean investors reached 102.6 trillion won in November, almost doubling from 58 trillion won in October.
Trading Volumes and Market Challenges
In November, the average daily trading volume of cryptocurrencies reached 14.9 trillion won, nearly matching the trading volumes of South Korea's leading stock indices, KOSPI and KOSDAQ. However, the rapid growth of the crypto market also raises issues of regulatory concerns and market stability. The anticipated crypto tax policy is postponed to 2027.
The growth of the cryptocurrency industry in South Korea presents both significant investment opportunities and regulatory challenges.
