Daily crypto transactions in South Korea have soared to record highs. Local data reports reveal the average daily transaction volume has increased by 67% in the first six months of 2024.
The crypto market has seen a significant uptick recently, with Bitcoin (BTC) breaking through the crucial $70,000 level. While market participants worldwide enjoy these long-awaited gains, crypto transactions in South Korea have climbed to record highs.
South Korea Sees 67% Surge in Daily Crypto Transactions
The crypto market is undergoing a significant rally as BTC breached the $70,000 level earlier this week. Amid the bullish run, South Korea has seen crypto transactions reach record highs. According to local news reports, results from the “Virtual Asset Business Operator Survey” revealed a sharp increase in crypto adoption. The survey results show domestic virtual asset investors increased by 21% to 7.78 million won in the first half of 2024 and from 2023’s 6.45 million won. Daily transaction volumes also increased by 67% from 3.6 trillion won to 6 trillion won during the same period. Data analysis further showed that the market cap of virtual assets increased by 27% to 55.3 trillion won simultaneously, while the operating profits of 21 domestic virtual asset business operators increased by 106% to 590 billion won.
The local news report also suggests that BTC’s recent run reflects improved market sentiment as former President Donald Trump’s chances of winning the US election improve. South Korea’s Financial Intelligence Unit explained to local media:
“The inflow of funds into the US Bitcoin spot exchange-traded fund (ETF) and the US presidential candidates’ announcements of virtual asset support policies have spurred the rise in virtual asset prices.”
South Korea Plans to Monitor Cross-Border Crypto Transactions
As crypto adoption becomes more widespread in South Korea, the country is strengthening its industry oversight. According to a local news outlet, The Korea Times, the South Korean government plans to regulate cross-border transactions of virtual assets. At a G20 meeting in Washington, South Korean Finance Minister Choi Sang-Mok announced improved monitoring measures to address tax evasion and illegal foreign exchange activities, which have reportedly become a “blind spot” for law enforcement. The Finance Minister reportedly said that the country plans to require businesses dealing in international crypto transfers to register and report all transactions to the central bank monthly.
The measures will start in Q2 of 2025 once the government establishes a legal framework under the Foreign Exchange Transactions Act.
The South Korean government recognizes the need for absolute regulatory clarity in the digital asset sector and is acting accordingly. In 2023, the FSC proposed several mandates regarding the industry, including rules forcing companies to disclose crypto holdings. The country has a seemingly warm approach to blockchain technology, which fosters a welcoming environment for digital asset investment. In December 2023, the FSC announced an interest benefit mandating that digital asset investors receive interest when depositing funds into crypto exchanges. The Bank of Korea (BOK) will also harness the power of blockchain and announced a pilot central bank digital currency (CBDC) program commencing in Q4 2024.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
