Local reports from South Korea indicate that the number of cryptocurrency investors in the country has significantly increased, now surpassing 15.59 million, accounting for more than 30% of the national population. This data is being published for the first time, highlighting the growing interest among the South Korean public in crypto assets, especially following the recent U.S. presidential election.
According to data submitted by the Bank of Korea on the 25th to the National Assembly's Planning and Finance Committee member, Democratic Party Congressman Lim Kwang-hyun, 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.
The report indicates that these numbers stem from the investor counts of five major exchanges in Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax. The report further reveals that the daily trading volume of the top five cryptocurrency exchanges in 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 cryptocurrencies as a viable investment option.
On July 19, the Virtual Asset User Protection Act issued by the Financial Services Commission (FSC) 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 on cryptocurrency exchanges in the country, marking the first release of cryptocurrency-related statistics.
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 population now participating in cryptocurrency trading, the South Korean market is expected to continue to grow and develop in the coming years.
Trump's victory attracted more South Korean cryptocurrency investors.
The recent surge in cryptocurrency trading volume can be attributed to the frenzy of South Korean retail investors for high-momentum tokens. Leading tokens include Ripple (XRP), Dogecoin, Stellar (XLM), Ethereum Name Service (ENS), and Hedera (HBAR), all of which have seen considerable trading volume. This enthusiasm for altcoins underscores the strong retail demand in the South Korean market.
The preferences of South Korean investors for cryptocurrencies reflect not only a pursuit of returns but also broader cultural and economic trends. The high-risk tolerance of South Korean investors has a long history, driven by rapid economic growth and a cultural inclination towards speculative investments. The widening wealth gap in the country further pushes individual investors to turn to high-volatility assets like altcoins, as these assets promise higher returns.
According to a report by the Korean News Agency, the increase in user numbers can be attributed to the results of the U.S. presidential election in November. On November 5, Trump won the U.S. presidential election. Many have stated that Trump's victory will help reverse the 'anti-Bitcoin' sentiment in the U.S. and bring positive changes to the country's approach to cryptocurrencies.
This statement has also reached the Korean cryptocurrency community. The Korean News Agency stated that the increase in South Korean cryptocurrency users following Trump's victory may be due to hopes for more favorable regulation in the cryptocurrency space.
The South Korean government has been quite proactive in formulating regulatory measures to address the 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 trying to catch up, South Korea's cryptocurrency trading scene is a noteworthy area for both investors and policymakers. As the year comes to a close, all eyes will be on how this trend evolves and what it means for the future finance of one of the most technologically advanced economies in the world.
This article is authorized for reposting from: (Block客)
'Did Trump drive Korean retail investors crazier? 15.59 million users flooded into the market, with trading volume catching up to the stock market!' This article was first published in 'Crypto City'.
