What happened?
South Koreans are holding a record $73.4 billion in crypto assets on domestic exchanges, according to the nation’s central bank. The Bank of Korea (BOK) reported that the total market capitalization of crypto in domestic wallets surpassed 100 trillion won for the first time in December 2024. This increase was driven by a spike in crypto purchases following Donald Trump’s election and his pro-crypto policies.
Who does this affect?
This affects a wide range of stakeholders including South Korean crypto investors, domestic exchanges, and regulatory bodies. Investors in South Korea have significantly increased their crypto holdings, reflecting heightened interest and participation in the digital asset market. Additionally, crypto exchanges will see more activity and potentially higher revenues, while regulators need to respond to these changes with appropriate oversight.
Why does this matter?
The significant rise in crypto holdings and transaction volumes in South Korea could have major impacts on both local and global markets. It indicates growing acceptance and normalization of cryptocurrencies in mainstream finance within South Korea, potentially influencing global crypto trends. Moreover, the anticipated regulatory changes could set precedents that affect market operations, investor behaviors, and cross-border financial relations.