- Bitcoin’s price surge boosts South Korea’s crypto market, now valued at 55.3 trillion won.
- Male investors in their 30s lead South Korea’s growing virtual asset sector.
- High volatility makes cautious investment crucial for South Korea’s crypto investors.
As Bitcoin’s price moved past 100 million won, South Korea’s digital asset market has expanded substantially. The number of domestic investors grew by over a million in the first half of this year. A current survey by the Financial Intelligence Unit (FIU) of the Financial Services Commission highlighted increased volatility alongside this dramatic surge.
The Virtual Asset Business Survey from the FIU showed that the number of crypto investors in South Korea reached 7.7 million in the first half of this year, an increase of 21% in six months. The market’s daily transaction volume is now worth over 6 trillion won, a surge of 67%, while the total market capitalization jumped to 55.3 trillion won.
Notably, the report highlights that men in their 30s are the leading investment demographic, representing 1.58 million of the total investors, followed by men in their 40s and 20s. Bitcoin (BTC) holds the majority share among assets, making up 37.2% of all domestic holdings, followed by Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE), and Ethereum Classic (ETC).
However, this rapid expansion also brings increased risk, as market volatility has sharply risen. One indicator is the maximum drawdown (MDD), which measures price decline from the peak, hitting 70%—significantly higher than the KOSPI stock index’s MDD of 14%. This extreme volatility, driven by factors such as anticipation for a U.S. Bitcoin spot exchange-traded fund (ETF) and virtual asset support from U.S. presidential candidates, highlights the need for caution in the market.
South Korea’s Virtual Asset Committee to Address Regulatory Issues
Meanwhile, South Korea’s Financial Services Commission (FSC) announced that the newly formed Virtual Asset Committee will hold its first meeting on November 6. Serving as an advisory group, the committee will focus on the second phase of the country’s virtual asset legislation.
The newly formed committee will address corporate virtual asset accounts and the legalization of self-regulatory organizations. Its other responsibilities include protecting customer assets and preventing unfair transactions. In a meeting held on Wednesday, FSC Chair Kim Byoung-hwan stated the meeting would be crucial in determining how South Korea addresses cryptocurrency issues.
While investors are lured by potential gains, the heightened volatility in the South Korean crypto market suggests prudent investment decisions and risk management strategies.
Related News:
South Korea’s Virtual Asset Committee to Tackle Corporate Crypto Investment
Tax-Free Bitcoin? Trump’s Cryptocurrency Proposal Explained
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
