South Korea’s Crypto Market Cap Reaches $21.1 Billion in H1 2023
The virtual asset market in South Korea has experienced a significant surge in the first half of 2023, reaching a total market cap of $21.1 billion. This represents a 46% increase compared to the previous half-year term, according to the Financial Services Commission (FSC) of South Korea. The global crypto market also witnessed substantial growth during the same period, with its market cap surging by 53% to reach 154 trillion won.
South Korea’s Crypto Marketplace Operators Report 82% Increase in Profits
In addition to the surge in market capitalization, South Korea’s virtual marketplace operators saw an impressive 82% rise in operating profits, totaling $168 million during the first half of the year. Deposits in these crypto exchanges also increased by 11% to reach approximately $3 billion.
The FSC’s report surveyed a total of 35 virtual asset operators in the country, including 26 crypto exchanges, and revealed some noteworthy trends. Despite the overall growth in the crypto market, the average daily transaction value at the exchanges slightly decreased by 1.3% to $2.1 billion in the January-June period compared to six months prior.
The number of individual and corporate crypto traders decreased by 210,000 to 6.06 million as of the end of June. Among individual traders, those in their 30s accounted for the largest share, with over 67% holding virtual assets worth less than 500,000 won.
662 Types of Cryptocurrencies Traded on Korean Exchanges
The data further showed that South Korea saw the trading of 622 types of cryptocurrencies in the first half of the year, including popular options like Bitcoin, Ethereum, Ripple, and Dogecoin. During this period, 169 new crypto coins were listed, while 115 coins had trading suspensions due to various reasons such as project risk and investor protection.
New Law to Protect Crypto Investors in South Korea
As South Korea’s crypto market continues to grow and evolve, the country is set to implement a new law in July next year to protect crypto investors. This legislation will enable authorities to penalize unfair trading practices with potential sentences and fines. Acts of unfair trading that fall under the law’s purview include the use of undisclosed information, market price manipulation, and illegal transactions.
Hot Take: South Korea’s Crypto Market Thrives Amidst Regulatory Developments
South Korea’s crypto market has experienced significant growth in terms of market capitalization and profits in the first half of 2023. Despite a slight decrease in daily transaction value and the number of traders, the market remains vibrant with a wide variety of cryptocurrencies being traded. As the country prepares to implement new regulations to protect investors, it demonstrates its commitment to ensuring a fair and secure crypto trading environment. With continued growth and evolving regulations, South Korea’s crypto market is poised for further success in the future.
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