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Korea’s cryptocurrency market has seen a significant growth of 53% in market capitalization over six months, reaching 43.6 trillion won by the end of December 2023. This growth is driven by rising cryptocurrency prices and improved investor sentiment. Transaction volume increased by 24% to 649 trillion won, and KRW deposits rose by 21% to 4.9 trillion won. Despite these positive trends, cryptocurrency price volatility remains high at 61.5%, and the number of cryptocurrency businesses closing down continues to rise, prompting caution among users.
Key details from the Financial Intelligence Unit’s survey indicate that the KRW market capitalization surged 99% to 43.1 trillion won, while the coin market saw a modest 1% increase to 460 billion won. Trading volume growth was attributed to positive news and policies, including the anticipation of a Bitcoin spot ETF. The survey covered 29 businesses, with the top 10 cryptocurrencies, including Bitcoin and Ethereum, making up 62% of the market.
Revenue and operating profit for cryptocurrency traders also improved, with a 1% increase in revenue to 580 billion won and an 18% rise in operating profit to 269.3 billion won. However, the coin market faced a loss of 27.5 billion won. The average trading commission rate remained stable at 0.15%.
The number of cryptocurrencies traded in Korea was 1,333, though the actual number of unique crypto assets in circulation was 600, a slight decline from the previous period. The survey also noted a decrease in sole-listed crypto assets and an increase in outward transfers of crypto assets.
In light of the increasing number of business closures among virtual asset providers, the Financial Services Commission has urged users to exercise caution when trading and storing virtual assets.
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