South Korea has emerged as a global leader in cryptocurrency adoption, with over 15.59 million citizens now owning digital assets.
Surging Investments Following Global Events
Data from the Bank of Korea reveals a sharp increase in cryptocurrency investments, especially after key global events like the U.S. presidential election. External economic and political factors have favored investor sentiment. By the end of November, 15.59 million South Koreans held accounts across the nation’s top exchanges: Upbit, Bithumb, Coinone, Korbit, and GOPAX, marking a significant increase of 610,000 new investors from October’s 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, nearly double October’s valuation of 58 trillion won. This growth was accompanied by an increase in average holdings per investor from 3.87 million won in October to 6.58 million won in November.
Daily Trading Volume Rivals Stock Market
One of the 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, nearly equivalent to the combined trading volumes of South Korea’s KOSPI and KOSDAQ stock indices. Deposits on cryptocurrency exchanges also doubled, rising from 4.7 trillion won in October to 8.8 trillion won in November.
Despite the rapid growth in cryptocurrency adoption, South Korea faces challenges related to regulation and market stability. The country's anticipated crypto tax policy has been postponed to 2027 due to unresolved regulatory issues.
