The cryptocurrency market in South Korea has experienced impressive resilience and growth, reaching a market value of US$32.4 billion. This significant surge can be attributed to the increasing interest in digital assets, particularly Bitcoin. Despite a temporary drop in March, where it reached a high of US$73,600, Bitcoin has since regained its value and is currently priced at US$66,000.
The South Korean Financial Intelligence Unit (KoFIU), which is affiliated 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 experienced a 53% increase in market capitalization during the second half of 2023, amounting to approximately US$11.2 billion.
According to KoFIU, the rise in cryptocurrency prices and the recovery of investor sentiment have contributed to the increase in trading volume, market capitalization, operating profit of exchanges, and Korean won deposits. Additionally, the number of crypto trading users has rebounded since the first half of 2023.
The study also highlights that during the last six months of 2023, the daily trading volume reached 3.6 trillion won ($2.6 billion), representing a 24% growth compared to the previous period. Furthermore, there has been a 44% decrease in the volume of currency trading, which involves transactions between different cryptocurrencies without the need for conversion to fiat currencies like the US dollar or Korean won.
Apart from the impressive volume and market capitalization growth, South Korean exchanges have also witnessed a significant increase in the number of users. By the end of 2023, the number of active users on registered platforms rose by 390,000, totaling 6.45 million users. This increase, which accounts for more than 10% of the country’s population, has been primarily driven by individual investors interested in Bitcoin, Ethereum, and other altcoins, with a noticeable majority between the ages of 30 and 40.
Please note that the views and opinions expressed in this article, as well as those of any individuals mentioned, are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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