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South Korea hits record crypto transaction levels

South Korea hits record crypto transaction levels

GrafaGrafa2024/11/01 06:37
By:Isaac Francis

South Korea has witnessed a remarkable surge in cryptocurrency transactions, reaching a record daily volume of 6 trillion won, which represents a 67% increase from earlier figures. 

In the first half of 2024, the number of active domestic virtual asset investors rose to 7.78 million, reflecting a 21% increase compared to the previous year. 

This growth in crypto activity has significantly boosted the operating profits of 21 centralised exchanges in the country, which reported a doubling of profits with a 106% increase during the same period. 

However, the demographic landscape of crypto investors remains largely homogenous, with men constituting 67% of participants, particularly among millennials in their 30s. 

The Financial Intelligence Unit attributed this rise in virtual asset prices to factors such as the inflow of funds into U.S. Bitcoin (CRYPTO:BTC) spot exchange-traded funds (ETFs) and supportive policies announced by U.S. presidential candidates regarding virtual assets. 

Despite the booming market, South Korean regulators continue to maintain strict oversight of the crypto sector. 

Concerns about investor protection are heightened by high delisting rates; over the past seven years, 34.9% of tokens listed on South Korean exchanges have been removed, with half of these assets failing within two years. 

Many of these delisted tokens experienced rapid price increases due to initial exchange listings but lacked long-term stability. 

South Korea has established itself as one of the top three global crypto hubs, alongside Dubai and Switzerland. 

A recent report from Social Capital Market highlighted that clear regulatory policies and favorable tax structures contribute to South Korea's leadership in the cryptocurrency space. 

In July, legislator Song Eon-seok proposed a bill to delay taxation on crypto investment income by three years, extending the deadline beyond January 1, 2025. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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