WEB3
by Soumen Datta
December 25, 2024
The Bank of Korea’s report shows a sharp rise in crypto investments, with market valuation reaching $70.3 billion in November, nearly doubling the previous month.
South Korea has emerged as a global leader in cryptocurrency adoption, with over 15.59 million citizens—more than 30% of the nation’s population—now holding digital assets, according to data from the Bank of Korea (BOK).
The data from the BOK reveals a sharp increase in cryptocurrency investments, particularly following key global events, such as the U.S. presidential election. External economic and political factors appear to have played a role in shaping investor sentiment.
By the end of November, 15.59 million South Koreans held accounts across the country’s top five exchanges: Upbit, Bithumb, Coinone, Korbit, and GOPAX. This represents a significant jump of 610,000 new investors from October’s total of 14.98 million.
The cryptocurrency market in South Korea has experienced unprecedented growth in recent months. Bitcoin prices surged from 105 million won in October to 135.8 million won by the end of November, contributing to a substantial rise in total market valuation.
In November, the total value of digital assets held by South Korean investors reached 102.6 trillion won ($70.3 billion), nearly double October’s valuation of 58 trillion won ($39.7 billion). This growth was accompanied by an increase in average holdings per investor, which rose from 3.87 million won ($2,655) in October to 6.58 million won ($4,777) in November.
One of the most striking developments is the rapid growth in cryptocurrency trading volumes, which now rival those of traditional stock markets.
In November, the average daily trading volume of domestic cryptocurrencies reached 14.9 trillion won ($10.2 billion). This figure is nearly equivalent to the combined trading volumes of South Korea’s benchmark stock indices, the KOSPI ($6.8 billion) and KOSDAQ ($4.7 billion).
Deposits on cryptocurrency exchanges also doubled, rising from 4.7 trillion won ($3.2 billion) in October to 8.8 trillion won ($6 billion) in November.
While the rapid growth of cryptocurrency adoption is a promising sign of innovation, it also brings regulatory and stability challenges. South Korea’s crypto market remains vulnerable to external shocks and lacks a unified regulatory framework.
The country’s much-anticipated crypto tax policy, initially scheduled for early 2025, has been delayed until 2027 due to unresolved regulatory concerns. Experts believe that establishing clear and consistent guidelines is crucial for maintaining market stability and protecting investor rights.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
Author
Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
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