South Korea has experienced a significant increase in cryptocurrency adoption, with over 15.5 million citizens now holding digital assets, representing approximately 30% of the country’s population. According to a recent report, the number of crypto investors increased by 610,000 in November 2024, amidst a broader trend of growing market participation.
Market Value Doubles in a Month
The surge in cryptocurrency adoption is closely tied to heightened market activity following US President-elect Donald Trump’s pro-crypto policy announcements. The total crypto holdings in South Korea reached 102.6 trillion KRW (worth $69 billion) by the end of November, nearly doubling from the previous month’s 58 trillion KRW (worth $39 billion). The average crypto holdings per person also saw a significant rise, climbing from 3.87 million KRW (worth $2,655) in October to 6.58 million KRW (worth $4,400) in November.
Trading Volumes Reach Record Highs
The spike in investor engagement is mirrored by a surge in trading volumes, which reached daily averages of $10.2 billion in November, rivaling the combined volumes of South Korea’s main stock markets. This rapid growth has led to calls for stronger regulatory measures to safeguard investors and ensure market stability.
Regulatory Challenges Ahead
Rep. Lim Gwang-Hyun noted, “We need to make thorough preparations at the government-wide level to establish sound market transactions that enhance the stability of the virtual asset market and protect the rights and interests of users.” However, the government is struggling to keep up with the rapid growth, with the long-delayed cryptocurrency tax being postponed once again to 2027.
Delays in Crypto Taxation
The Democratic Party (DP) announced the latest delay on December 1, following tense discussions with the People Power Party (PPP). Critics argue that small crypto traders may be negatively affected by this delay, which is the third since the initiative was first introduced in 2021.
Source: Cryptopotato.com
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