According to data from South Korea’s Financial Services Commission (FSC), the nation’s digital asset market experienced remarkable growth in the first half of 2023. The market’s value now stands at $21.1 billion, which is a considerable 46% increase compared to the previous 6 months, as reported by the FSC.
Notably, the broader cryptocurrency market also expanded significantly during the same period, boasting a total value that rose by 53% to reach a market capitalization of 154 trillion won. This growth was primarily attributed to the surge in Bitcoin prices, which skyrocketed by 81%, reaching $30,441 in June 2023.
Digital asset marketplace companies in South Korea also flourished, they reportedly experienced an 82% increase in operating profits ad amassed a total of $168 million for the first half of the year. Additionally, deposits made within these digital currency exchanges saw an 11% uptick, totaling around $3 billion.
However, daily transactions on South Korea’s 26 exchanges experienced a slight dip of 1.3%, amounting to $2.1 billion in the first half of the year. Furthermore, the number of investors and digital traders decreased by 210,000, resulting in a total of 6.06 million by the end of June. Most of these individuals held digital assets valued at less than 500,000 won.
The data also revealed that about 622 different cryptocurrencies were actively traded in the market, including well-known options like Bitcoin, Ripple, Ethereum, and Dogecoin. Nevertheless, 115 coins faced trading suspensions for various reasons, including project-related risks and investor protection concerns.
Meanwhile, during this period, the South Korean government introduced a new regulation, slated to take effect in July 2024, aimed at safeguarding its citizens from the volatility and challenges that have recently plagued the country’s digital asset sector.
This new regulatory framework, known as the Virtual Asset User Protection Bill, grants authorities the ability to take action against unfair trading practices, including activities such as sharing confidential information, manipulating prices, and engaging in illicit transactions.
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