South Korea's crypto market booms with 610K New investors and $69B in holdings
South Korea's crypto market booms with 610K New investors and $69B in holdings
South Korea is witnessing an unprecedented wave of cryptocurrency adoption, with over 610,000 new investors entering the market in November 2024.
This brings the total number of crypto holders in the country to more than 15.5 million—approximately 30% of the population—underscoring the nation’s growing enthusiasm for digital assets.
A report from the Bank of Korea revealed that South Korea's total crypto holdings soared to 102.6 trillion KRW ($69 billion) in November, a staggering increase from October’s 58 trillion KRW ($39 billion). This dramatic growth has been fueled by heightened market optimism following pro-crypto policy announcements from U.S. President-elect Donald Trump. Average crypto holdings per investor climbed from 3.87 million KRW ($2,655) in October to 6.58 million KRW ($4,400) in November.
Daily trading volumes also reached an average of $10.2 billion, rivaling the combined activity of South Korea’s main stock markets. Lawmaker Lim Gwang-Hyun acknowledged the market's rapid growth, emphasizing the urgent need for government measures to ensure stability and investor protection.
Regulatory delays and market challenges
Despite this surge, South Korea continues to grapple with regulatory challenges. The introduction of a long-delayed cryptocurrency tax, originally set for 2022, has been postponed once again, now slated for 2027. The Democratic Party (DP) cited the need for a more comprehensive regulatory framework as the reason for the delay, though critics warn this could disadvantage smaller traders who lack protections in the interim.South Korea’s growing crypto market presents both opportunities and challenges. While investors capitalize on favorable conditions, policymakers face mounting pressure to establish safeguards that promote stability and protect market participants. As the nation continues to shape its digital asset landscape, all eyes are on how these efforts will evolve in the coming years.
Previously, U.S. and South Korea launch joint effort to combat crypto cybercrime
