Local reports in South Korea indicate a significant increase in the number of cryptocurrency investors in the country, now exceeding 15.59 million, accounting for over 30% of the national population. This data is being reported for the first time, highlighting the growing interest among the South Korean public in crypto assets, particularly following the recent U.S. presidential election.
According to data submitted by the Bank of Korea to the National Assembly's Planning and Finance Committee members and Democratic Party lawmaker Lim Kwang-hyun on the 25th, the number of domestic cryptocurrency investors in South Korea reached 15.59 million by the end of November, an increase of 610,000 from the end of October. These investors collectively hold approximately 102.6 trillion won (about 70.3 billion USD) in cryptocurrency assets.
Source: Yonhap News Agency (Content translated by AI)
The report states that these figures come from the number of investors across five major exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax. The report further reveals that the average daily trading volume of the top five cryptocurrency exchanges in South Korea has reached approximately 14.9 trillion won (about 11 billion USD), comparable to the South Korean stock market. This surge in trading activity highlights the increasing acceptance and adoption of cryptocurrency as a viable investment option.
On July 19, the Virtual Asset User Protection Act issued by the Financial Services Commission (FSC) of the country officially came into effect. According to the new regulations, virtual asset service providers must ensure the protection of users' cryptocurrency assets. This data was collected and published following the implementation of new regulations for cryptocurrency exchanges in the country, which also marks the first release of statistical data related to cryptocurrencies.
As the cryptocurrency market continues to evolve, South Korea's regulatory environment is also adapting. The government is exploring new regulations to ensure investor protection while promoting innovation in the digital asset space. With a significant portion of the public now participating in cryptocurrency trading, the South Korean market is expected to continue growing and developing in the coming years.
Trump's victory attracted more South Korean cryptocurrency investors.
The recent surge in cryptocurrency trading volume is attributed to the frenzied enthusiasm of South Korean retail investors towards high-momentum tokens. Leading several tokens include Ripple (XRP), Dogecoin, Stellar (XLM), Ethereum Name Service (ENS), and Hedera (HBAR), all of which have seen significant trading volumes. This enthusiasm for altcoins underscores the strong demand from retail investors in the South Korean market.
South Korean investors' preference for cryptocurrencies is not merely a pursuit of returns but also reflects broader cultural and economic trends. The historical high-risk tolerance of South Korean investors is driven by rapid economic growth and a cultural inclination towards speculative investments. The growing wealth gap domestically further propels individual investors towards highly volatile assets like altcoins, as these assets promise higher returns.
According to reports from Yonhap News Agency, the increase in user numbers can be attributed to the results of the U.S. election in November. On November 5, Trump won the U.S. presidential election. Many believe that Trump's victory will help reverse the 'anti-Bitcoin' sentiment in the U.S. and bring about positive changes in the country's approach to cryptocurrencies.
This sentiment also resonated within South Korea's crypto community. Yonhap News Agency stated that the increase in cryptocurrency users in South Korea following Trump's victory may be due to hopes for more favorable regulations in the cryptocurrency sector.
The South Korean government has been quite proactive in formulating regulatory measures to address this surge in cryptocurrency trading. The implementation of the Virtual Asset User Protection Act aims to safeguard investors while promoting a legitimate and transparent market. Despite these efforts, the growth momentum of the cryptocurrency market continues, indicating that the regulatory framework is adapting rather than stifling this new investment domain.
With an active retail trading community and a regulatory environment attempting to keep up, South Korea's cryptocurrency trading scene is an area of interest for both investors and policymakers. As the end of the year approaches, all eyes will be on how this trend evolves and what it means for the future finances of one of the world's most technologically advanced economies.
"The number of South Korean cryptocurrency investors exceeds 15.59 million, accounting for over 30% of the national population" was first published in (Blockcast).
