South Korea’s Digital Asset Market Hits $21.1 Billion in First Half of 2023

In the first six months of 2023, South Korea’s cryptocurrency market witnessed a significant surge, reaching a total market value of $21.1 billion.

Local media cited reports from the Financial Services Commission (FSC) of South Korea, which noted a 46% growth in the country’s crypto market capitalization compared to the prior six months.

In comparison, the global cryptocurrency market also flourished during the same timeframe, with a market cap increase of 53%, achieving $114 million (154 trillion won).

Bitcoin (BTC), the premier digital currency, recorded a substantial 81% growth in its value.

Profits for South Korean Crypto Firms Jump by 82%

South Korea’s digital asset platforms reported an impressive uptick of 82% in operational profits, tallying up to $168 million for the first half of the year.

Moreover, funds held within these crypto trading platforms observed an 11% growth, totaling around $3 billion.

A detailed study by the FSC, which surveyed 35 digital asset service providers in South Korea, including 26 crypto exchanges, unveiled several noteworthy insights.

While the crypto market saw expansive growth overall, the average daily transaction volume across the 26 exchanges experienced a slight dip of 1.3%, settling at $2.1 billion for the January-June period, when compared to the previous half-year.

The report also pointed out a decrease in both individual and corporate crypto traders, with numbers dwindling by 210,000 to stand at 6.06 million. Of these, a dominant majority were individuals in their 30s, with over 67% holding digital assets worth less than 500,000 won.

South Korea Sees Trading of 662 Cryptocurrencies

The year’s first half also marked the trading of 622 distinct cryptocurrencies in South Korea, encompassing top players like Bitcoin, Ethereum, Ripple, and Dogecoin. The period also saw the introduction of 169 new digital currencies, while 115 were suspended from trading due to concerns ranging from project vulnerabilities to safeguarding investors.

In response to the evolving landscape, South Korea is gearing up to implement fresh regulations by July of the following year to fortify the protection of cryptocurrency investors.

The upcoming legislation will address and penalize unjust trading activities, such as undisclosed information usage, price manipulation in the market, and unlawful dealings. Offenders can expect to face penalties and financial fines.