Coinspeaker South Korea Sees Surge in Virtual Asset Investment as Bitcoin Breaks 100 Million Won
Virtual Asset Business Survey carried out a test to determine how many people are investing in crypto in South Korea. The Financial Intelligence Unit announced this. They reported that South Korean crypto investors have increased to 7.8 million. This is a 21% increase from the record set in the second half of 2023.
The increase in crypto investors has also spiked the average trading volume and market capitalization. They have increased by 67% to $4.4 billion and 27% to $40 billion, respectively. The profit of 21 domestic virtual asset services has also more than doubled.
Demographics and Trends in South Korea’s Crypto Market
The survey also revealed Korean citizens’ attitudes towards crypto. Male investors alone made up 68% of the nation’s crypto investors. Men in their 40s and 20s also represent large segments, with 1.5 million and 1.08 million investors, respectively. Men within the 50-year bracket are 850,000. The Korea Times reported:
“The proportion of men in their 30s was the highest. The number of male investors in their 30s was 1.58 million, followed by men in their 40s (1.5 million), men in their 20s and younger (1.08 million), and men in their 50s (850,000). By gender, male investors accounted for 5.29 million, or 68% of the total.”
It was added that 67% of investors hold cryptos worth less than $375. Only 10% of investors hold assets worth more than $7,500, and 1.3% control portfolios worth more than $75,000. The ultra-high-net-worth segment, with assets over $750,000, represents 0.03% of investors or approximately 3,500 individuals.
The crypto market is gearing towards a bullish moment again as the price of Bitcoin has broken above $72,000. South Korea’s Financial Intelligence Unit noted that the inflow of funds into the US spot exchange-traded fund (ETF) and talks about support for crypto policies by the US presidential candidates have also helped the price of cryptocurrencies. FIU added that the volatility in crypto prices has also increased compared to the second half of 2023. Hence, citizens should apply caution when investing in these digital assets. They said:
“The inflow of funds into the US Bitcoin spot exchange-traded fund ( ETF ) and the US presidential candidates’ announcements of virtual asset support policies have promoted the rise in virtual asset prices…Virtual asset price volatility has increased compared to the second half of 2023, so careful investment decisions are necessary.”
The Asian country, however, plans to tighten regulation that guides trading cryptocurrencies. The South Korean authority is working on regulations that would ensure companies that engage in cross-border crypto trading to register with the authority and give reports of their monthly transaction details to the country’s central bank, the Bank of Korea.
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South Korea Sees Surge in Virtual Asset Investment as Bitcoin Breaks 100 Million Won
