South Korea’s Crypto Market Cap Nearly Doubles in First Half of 2023, Surpasses $21 Billion

south-korea-crypto-law-1 — Source: Pixabay

South Korea’s virtual asset market has experienced a significant surge during the first half of 2023, reaching a total market cap of $21.1 billion.

The Financial Services Commission (FSC) of South Korea revealed that the country’s crypto market cap witnessed a 46% increase compared to the previous half-year term, local media outlets reported.

The global crypto market also witnessed substantial growth during the same period, with its market cap surging by 53% to reach a staggering 154 trillion won as Bitcoin prices saw a robust 81% increase, reaching $30,441 as of June, compared to the end of the previous year.

South Korea’s Crypto Marketplace Operators Report 82% Increase in Profits

In addition to the surge in market capitalization, South Korea’s virtual marketplace operators also saw an impressive 82% rise in operating profits, totaling $168 million during the first half of the year.

Deposits in these crypto exchanges also increased by 11% to reach approximately $3 billion.

The FSC’s report, which surveyed a total of 35 virtual asset operators in the country, including 26 crypto exchanges, also revealed some noteworthy trends.

Despite the overall growth in the crypto market, the average daily transaction value at the 26 exchanges dipped slightly, decreasing by 1.3% to $2.1 billion in the January-June period compared to six months prior.

Interestingly, the number of individual and corporate crypto traders decreased by 210,000 to 6.06 million as of the end of June. Among individual traders, those in their 30s accounted for the largest share, with over 67% holding virtual assets worth less than 500,000 won.

662 Types of Cryptocurrencies Traded on Korean Exchanges

The data further showed that South Korea saw the trading of 622 types of cryptocurrencies in the first half of the year, including popular options like Bitcoin, Ethereum, Ripple, and Dogecoin.

During this period, 169 new crypto coins were listed, while 115 coins had trading suspensions due to various reasons such as project risk and investor protection.

As South Korea’s crypto market continues to grow and evolve, the country is set to implement a new law to protect crypto investors in July next year.

This legislation will enable authorities to penalize unfair trading practices with potential sentences and fines.

Acts of unfair trading that fall under the law’s purview include the use of undisclosed information, market price manipulation, and illegal transactions.