South Korea’s Crypto Market Cap Nearly Doubles in First Half of 2023
The Financial Services Commission (FSC) of South Korea has reported a significant surge in the country’s crypto market cap during the first half of this year. The total market cap reached 28.4 trillion won ($21.1 billion), representing a growth of 46% compared to the previous six months.
This increase aligns with the global trend, as the international crypto market also experienced substantial growth during the same period. Bitcoin played a significant role in driving this surge, with an 81% increase, resulting in a 53% rise in the global crypto market cap to 154 trillion won.
According to Korea JoongAng Daily, operating profits of crypto companies in South Korea rose by 82% to 227.3 billion won during this period. Deposits also saw a similar performance, increasing by 11% to 4 trillion won.
Decrease in Daily Crypto Transactions and Traders
The FSC obtained these figures through surveys conducted among 35 crypto companies operating in South Korea, including 26 crypto exchanges. However, the survey revealed that the average value of daily crypto transactions decreased by 1.3%, amounting to 2.9 trillion won between January and June.
Furthermore, both individual and corporate traders decreased in number, with approximately 210,000 active members lost. The majority (over 67%) of individual traders were in their 30s and held an average of less than 500,000 won in their crypto wallets.
Korea Introduces New Law for Investor Protection
The data also indicates that Koreans have traded 622 digital currencies, with popular assets including Bitcoin, Ethereum, Dogecoin, and XRP. Additionally, 169 new coins were listed during this period, while 115 coins were suspended from trading due to reasons such as investor protection and increased project risk.
In an effort to protect investors, South Korea plans to implement a new law in July next year. This law will impose penalties, including imprisonment and fines, on individuals engaged in unfair trading practices such as the use of undisclosed information, illegal transactions, and market price manipulation.
Hot Take: South Korea’s Crypto Market Experiences Massive Growth
The first half of 2023 has seen a remarkable surge in South Korea’s crypto market cap, with an increase of nearly double its previous value. This growth aligns with the global crypto market trend and is led by Bitcoin’s significant price rise. Operating profits and deposits of crypto companies have also experienced substantial growth during this period.
However, there has been a decrease in the average value of daily crypto transactions and the number of traders. To protect investors from unfair trading practices, South Korea plans to introduce a unique law with penalties for individuals engaged in such activities. Overall, South Korea’s crypto market continues to evolve and attract attention in the global crypto landscape.
By
By
By
By