South Korea, a leading economic power in Asia, is preparing for a new phase in crypto regulation, allowing institutional investors to participate in cryptocurrency trading.
Regulatory Initiatives in South Korea
The Financial Services Commission of South Korea has announced plans to permit institutional investors to trade cryptocurrencies in stages. This decision follows recent policy changes allowing charities and universities to sell cryptocurrency received as donations. There are also plans to allow crypto exchanges to exchange crypto assets for fiat currency to cover operational costs. These measures are accompanied by the introduction of common sales guidelines to protect user interests.
Political Support for the Crypto Industry
President Yoon Suk-yeol of South Korea is known for his support of the cryptocurrency industry. During his election campaign, he promised to introduce necessary policies for the development of the local crypto sector. The ruling party also advocates for the introduction of spot cryptocurrency ETFs, which underscores their commitment to this industry's growth. In summer 2024, the government introduced the Virtual Asset Investor Protection Act, marking the first step towards clear crypto regulation in the country.
Growth Potential of South Korea's Crypto Market
South Korea remains one of the world's leading cryptocurrency markets. According to a Statista report, the country's cryptocurrency market revenue will reach $823.4 million by 2025, with user numbers rising to 12.41 million. The average revenue per user will be $66.3. South Korea's largest crypto exchange, Upbit, recently ranked as the fourth largest centralized exchange globally by monthly trading volume. The 24-hour spot trading volume on Upbit stands at $3,219,270,601.09, with top trading pairs including XRP/KRW, LAYER/KRW, SBD/KRW, BTC/KRW, and USDT/KRW.
South Korea continues to advance its cryptocurrency industry by offering new opportunities for institutional investors and enhancing regulatory frameworks to protect users. These efforts contribute to the growth and solidification of the country's position in the global crypto market.
