In November, South Korea witnessed a surge in its cryptocurrency user base, reaching a remarkable 15.6 million individuals—more than 30% of the nation’s total population.
Growing Interest in Cryptocurrency
According to a report by Yonhap News on December 25, this figure reflects an increase of 610,000 people actively involved in cryptocurrency investments when compared to the prior month. Representative Lim Kwang-Hyun of the Democratic Party of Korea revealed that these digital asset investors are a significant portion of South Korea’s approximately 51.7 million residents.
The statistics highlight involvement across five prominent exchanges in the country: Upbit, Bithumb, Coinone, Korbit, and Gopax. This broad engagement illustrates how cryptocurrency has captured the interest of a substantial segment of the population.
Regulatory Measures and Financial Holdings
To protect users’ investments, the Financial Services Commission (FSC) introduced the Virtual Asset User Protection Act on July 19. This regulatory measure aims to enhance the security of cryptocurrency holdings, and the recent data release marks the first instance where such details have been publicly shared, likely influenced by this new framework.
In terms of financial holdings, South Koreans collectively possess around 102.6 trillion Korean won—approximately $70.3 billion—in cryptocurrency assets. Interestingly, the trade volume for digital currencies is now approaching levels comparable to that of the local stock market.
Potential Influences on Market Sentiment
An uptick in cryptocurrency users might be linked to the recent US elections. Some analysts speculate that the election results, particularly Donald Trump’s win, could alter the prevailing negative perceptions of Bitcoin in the U.S. This potential shift may pave the way for more favorable attitudes and regulation in the crypto space. Such optimism has resonated within South Korea’s crypto community, leading to a boost in local participation as expectations of future regulations improve following the U.S. election outcomes.
Source: Cointelegraph
