Local reports show that crypto transactions in South Korea have surged to record highs. In the first half of this year, 7.78 million domestic virtual asset investors were active, reflecting a 21% increase from 2023.
Daily transaction volumes have also climbed sharply by 67%, from 3.6 trillion won to 6 trillion won.
Crypto Adoption is Surging in South Korea
Data showed that the operating profits for 21 centralized domestic exchanges more than doubled, seeing a 106% increase in the first half of this year.
Read More: Crypto Regulation – What Are the Benefits and Drawbacks?
However, there’s a clear lack of diversity in crypto adoption. Men make up 67% of South Korea’s crypto investors, with a notable concentration of millennials, especially men in their 30s.
“The inflow of funds into the US Bitcoin spot exchange-traded fund (ETF) and the US presidential candidates’ announcements of virtual asset support policies have spurred the rise in virtual asset prices,” the Financial Intelligence Unit told a local news outlet.
Despite this growth, South Korean regulators are maintaining close oversight of the sector. High delisting rates and potential risks to investors are ongoing concerns.
Over the past seven years, 34.9% of tokens listed on South Korean exchanges were delisted, with half failing to last two years.
These assets included tokens that gained rapid price increase due to initial exchange listings, but showed a lack of long-term stability.
Amid these developments, South Korea stands among the top three crypto hubs globally, alongside Dubai and Switzerland.
A recent Social Capital Market report highlights South Korea’s combination of clear regulatory policies and favorable tax structures are driving factors in its crypto leadership.
Read More: How to Reduce Your Crypto Tax Liability – A Comprehensive Guide
Regulation continues to play a critical role in the country’s crypto landscape. In July, legislator Song Eon-seok proposed a bill to postpone taxation on crypto investment income.
If passed, this bill would extend the tax deadline by three years, pushing it beyond the original January 1, 2025 date.
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Mohammad Shahid
https://beincrypto.com/south-korea-record-high-crypto-adoption/
2024-10-31 20:12:17
