South Korea Experiences Dramatic Rise in Crypto Adoption: 610K New Investors in Nov

South Korea has experienced a dramatic surge in cryptocurrency adoption. In fact, a new report suggests that more than 15.5 million citizens now hold digital assets which represents roughly 30% of the country’s population.

By November 2024, the number of crypto investors had increased by 610,000 compared to October amidst a broader trend of growing market participation.

South Korea’s Crypto Market Doubles in Value

This surge is closely tied to heightened market activity following US President-elect Donald Trump’s pro-crypto policy announcements, which sparked optimism among investors. The latest report by the Bank of Korea highlighted that, by the end of November, total crypto holdings in South Korea reached 102.6 trillion KRW (worth $69 billion), nearly doubling from the previous month’s 58 trillion KRW (worth $39 billion).

The average crypto holdings per person also saw a significant rise, climbing from 3.87 million KRW (worth $2,655) in October to 6.58 million KRW (worth $4,400) in November. This spike in investor engagement is mirrored by a surge in trading volumes, which reached daily averages of $10.2 billion in November, rivaling the combined volumes of South Korea’s main stock markets.

In a statement, Rep. Lim Gwang-Hyun noted,

“The virtual asset transaction volume is rapidly increasing to a level comparable to that of the stock market. We need to make thorough preparations at the government-wide level to establish sound market transactions that enhance the stability of the virtual asset market and protect the rights and interests of users.”

This accelerating pace of cryptocurrency adoption in South Korea has been driven by favorable market conditions as well as growing investor confidence. However, while this rapid growth presents opportunities, it also highlights the need for strong regulatory measures to safeguard investors and ensure market stability, an aspect that South Korean leaders are currently struggling with.

Delays in Crypto Taxation

It is important to note that South Korea’s long-delayed cryptocurrency tax was postponed once again, now set to take effect in 2027, as announced by the Democratic Party (DP), the largest faction in the National Assembly. This is the third delay since the initiative was first introduced in 2021, with the original deadline for implementation scheduled for January 2022.

The DP announced the latest delay on December 1, following tense discussions with the People Power Party (PPP). The former stressed that more time was needed to build a comprehensive framework for the tax and ensure effective regulation of digital assets. Meanwhile, critics argue that small crypto traders may be negatively affected by this delay.

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