The cryptocurrency market in South Korea has demonstrated impressive resilience and growth, reaching a market value of US$32.4 billion. This significant surge is the result of the increasing interest in digital assets, particularly Bitcoin. Although Bitcoin experienced fluctuations in March, reaching a high of US$73,600 and then temporarily dropping, it has now returned to a value of US$66,000.
The South Korean Financial Intelligence Unit (KoFIU), which is associated with the Financial Services Commission, conducted a study that captured this momentum. The report reveals a strong growth in commercial activity among the country’s main licensed exchanges, such as Upbit and Bithumb. Together, these exchanges saw a 53% increase in market capitalization in the second half of 2023, amounting to approximately US$11.2 billion.
KoFIU reports, “Trading volume, market capitalization, operating profit of exchanges, and Korean won deposits have all increased compared to the first half of the year due to rising cryptocurrency prices and recovering investor sentiment. The number of crypto trading users has also rebounded since the first half of 2023.”
During the last six months of 2023, the daily trading volume reached 3.6 trillion won ($2.6 billion), marking a 24% increase compared to the previous period. The study also revealed a 44% decrease in currency trading volume, which refers to transactions between different cryptocurrencies without the need for conversion to fiat currencies like the dollar or Korean won.
In addition to the growth in volume and market capitalization, South Korean exchanges have experienced a significant increase in the number of users. By the end of 2023, the number of active users on registered platforms grew by 390,000, totaling 6.45 million users. This increase, which accounts for over 10% of the country’s population, was primarily driven by individual investors interested in Bitcoin, Ethereum, and other altcoins, with a notable majority between the ages of 30 and 40.
Disclaimer: The views and opinions expressed in this article, by the author or anyone mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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