At the end of 2021, the Crypto Asset Market in South Korea experienced significant growth. The market values at $45.9 billion dollars (55.2 Trillion Won). The Financial Service Commission, the country’s principal financial regulator, revealed this information.
The financial regulator performed a one-of-a-kind investigation based on data gathered from a total of 24 authorized bitcoin exchange companies. The average total daily volume transaction for these bitcoin exchange companies increased to $9.4 billion.
The number of users, which was close to 5.58 million, also showed a strong trend. According to a study undertaken by the Financial Service Commission, this is the case.
Crypto Asset Market Continues to Grow
It’s no secret that South Korea has stringent restrictions in place when it comes to policy implementation. For the majority of the year 2021, the country has consistently delivered news. The Know Your Company and Travel Rule have been making headlines.
Despite all of these regulatory restrictions, the digital asset market is expected to develop significantly in 2021.
Korean-Won denominated cryptocurrency operators such as Upbit, Bithumb, Coinone, and Korbit have accounted for 95 percent of all transactions. The combined operational profit of 24 regulated exchanges was close to $2.8 billion. Net losses accounts for by only nine bitcoin exchange platforms.
The dominance of won in the Korean crypto sector was taken into account in a new license rule announced in 2021. This new license mandates that crypto exchanges provide traders with real-name bank accounts linked to a certified bank.
FSC Report Specifics
Nearly 200 small to medium-sized crypto firms have been put out of business as a result of this new regulatory framework. This is due to the fact that banks have previously refused to collaborate and give their services.
According to the FSC research, there are a total of 15.3 million crypto exchange users, with just 5.58 million participating in trading in 2021. Out of the 5.58 million crypto users, about 3.1 million are owners of digital assets worth less than a million won ($850). On the other side, 15% of traders have assets worth more than 10 million won ($8,500).
As previously stated, several medium and small exchanges forced to cease operations due to a new license rule. Only those that are still in operation have consistently followed tight privacy standards. Also included are those that frequently prohibit transactions from private wallets and alert transactions exceeding a specific threshold.
Other suggestions for token issuers also released in November of last year. It has goals to collecting unlawful monies and protecting investors from alleged malpractices. In comparison to the typical stock transaction rate on Korean exchanges, the average rate for miners’ fees or transaction rates is also quite high. Despite this, interest in cryptocurrency has surged in South Korea.
It discovered that there are 5.58 million dealers in the country. The population of men in their 30s accounted for 21.7 percent of the total. Females in their 30s, on the other hand, made up 9.5 percent of the population. Finally, women over the age of 30 made about 9% of the trade population.
