South Korea has witnessed a substantial surge in its virtual asset market during the first half of 2023, resulting in a total market cap of $21.1 billion. This significant growth of 46% compared to the previous half-year term was reported by the country’s Financial Services Commission (FSC) and covered by local media outlets. This surge in the crypto market is in line with the global trend, as the global crypto market cap increased by 53% during the same period, reaching a staggering 154 trillion won. The surge in Bitcoin prices played a significant role in this growth, with the price of Bitcoin increasing by 81% to $30,441 by June, compared to the end of the previous year.
Not only did the market capitalization experience a surge, but South Korea’s virtual marketplace operators also saw a remarkable increase in operating profits, with a rise of 82% to reach $168 million in the first half of the year. Additionally, deposits in these crypto exchanges increased by 11% to approximately $3 billion. The FSC’s report surveyed a total of 35 virtual asset operators in the country, including 26 crypto exchanges, and revealed some noteworthy trends. Despite the overall growth in the crypto market, the average daily transaction value at the 26 exchanges saw a slight dip of 1.3% to $2.1 billion in the January-June period compared to the previous six months.
Interestingly, the number of individual and corporate crypto traders decreased by 210,000 to 6.06 million by the end of June. Among individual traders, those in their 30s held the largest share, with over 67% holding virtual assets worth less than 500,000 won.
The data further revealed that South Korea witnessed the trading of 622 types of cryptocurrencies in the first half of the year. These included popular options like Bitcoin, Ethereum, Ripple, and Dogecoin. During this period, 169 new crypto coins were listed, while 115 coins faced trading suspensions due to various reasons, such as project risk and investor protection.
Related Post
With South Korea’s crypto market continuing to grow and evolve, the country is looking to implement a new law in July next year to protect crypto investors. This legislation aims to empower authorities to penalize unfair trading practices, including the use of undisclosed information, market price manipulation, and illegal transactions. The introduction of this law will ensure better investor protection and market integrity.
In conclusion, South Korea’s virtual asset market has seen a significant surge in the first half of 2023, with a market cap reaching $21.1 billion. This growth is in line with the global crypto market, which witnessed a surge of 53%, amounting to 154 trillion won. The surge in Bitcoin prices played a crucial role in this growth. Alongside the market capitalization surge, South Korea’s virtual marketplace operators reported an 82% increase in operating profits and an 11% increase in deposits. Despite a dip in the average daily transaction value at exchanges, the number of individual and corporate traders decreased, with the majority of individual traders in their 30s. South Korea witnessed the trading of 622 types of cryptocurrencies during this period, with new listings and trading suspensions taking place. The country is also preparing to implement a new law next year to protect crypto investors, which will enable authorities to penalize unfair trading practices and ensure market integrity.
