SEOUL, Oct. 9 (Yonhap) — Statistics released on Monday show that the worth of South Korea’s virtual asset market experienced a 46 percent growth in the first half of the year compared to six months prior. This increase is attributed to the rising prices of cryptocurrencies and a more positive investor sentiment.
The Financial Services Commission (FSC) reported that the market capitalization of the nation’s crypto market was 28.4 trillion won (US$21.05 billion) at the end of June, up from 19.4 trillion won at the end of 2020.
The total value of Korean won deposits made by traders also went up 11 percent to 4 trillion won, and the operating profit of the operators increased 82 percent to 227.3 billion won in the same period.
The FSC surveyed 35 virtual asset operators in the country, including 26 crypto exchanges.
Despite the increase in the value of the crypto market, the average value of daily crypto transactions at the 26 exchanges decreased 1.3 percent to 2.9 trillion won in the first half of the year.
Moreover, the number of individual and corporate crypto traders dropped by 210,000 to 6.06 million by the end of June.
Of the individual traders, those in their 30s made up the largest portion and more than 67 percent held virtual assets worth less than 500,000 won.
This March 20, 2023, file photo shows a screen displaying the real-time price of cryptocurrencies at the headquarters of Bithumb, a South Korean crypto exchange, in southern Seoul. (Yonhap)
The data also revealed that 622 types of cryptocurrency, including Bitcoin, Ethereum, Ripple and Dogecoin, were traded in South Korea in the first half. Additionally, 169 crypto coins were newly listed, while 115 coins had a suspension of trading due to project risk, investor protection or other reasons.
The max draw down rate of cryptocurrencies, which indicates the price volatility, was 62 percent as of end-June, 5 percentage points lower than the end of December.
South Korea plans to implement a law in July next year, the first of its kind, that is designed to protect crypto investors. It will punish those who take part in unfair trading practices, such as the use of undisclosed information, market price manipulation and illegal transactions, with prison terms and fines.
nyway@yna.co.kr
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