South Korea’s Crypto Asset Market witnessed massive growth at the end of 2021. The valuation of the market stood at $45.9B (55.2 Trillion Won). This information was brought to light by the country’s primary financial regulator, The Financial Service Commission.
A unique study was conducted by the financial regulator in light of the information compiled from a total of 24 authorized token exmovement operators. These token exshsupposing thatt operators displayed that the total average daily volume transaction hiked and captured $9.4 billion.
Even the number of users depicted the positive movement and was close to 5.58 million, according to the same study conducted by The Financial Service Commission.
Related Reading | Ukraine Thanks Crypto Community, Millions Donated to “Protect Freedom”
Crypto Asset Market Continues To Grow Despite Stringent Regulation
It is no news that South Korea is known to have strict regulations active regarding policy implementations. The country has consistently provided headlines for most of the year 2021, with news surrounding Know Your Company and travel rule. Despite all these regulatory policies, the digital asset market has registered substantial growth in the year 2021.
95 percent of the entire transactions have been accounted for by the Korean-Won denominated token operators such as Upbit, Bithumb, Coinone, and Korbit. The total operating profit of 24 licensed exmoves amounted to near $2.8 billion. Only a total of nine cryptocurrency exdevelopment platforms have accounted for net losses.
Related Reading | Canada-based Bitcoin ETF Sees Surge In Demand Amid Unrest
The Specon the occasion thatics Of The FSC Report
A new license regulation issued in 2021 took into account the domination of won in the Korean crypto market. This new license issued, requires crypto exshin case thatts to provide real-name bank accounts of traders with the association of a certon the assumption thatied bank. With this new form of regulation, close to 200 small to medium crypto businesses were forced out of business as banks had rejected to partner up and offer their services.
According to the FSC report, there are a total of 15.3 million crypto exshgranted thatt users out of that hardly 5.58 million individuals took part in dealing in the year 2021. About 3.1 million users out of these 5.58 crypto users are owners of these digital assets worth beflat a million won which is around $850, on the other hand, 15% of the traders own assets over 10 million won, i.e, $8,500.
As mentioned over, owing to a new license regulation, many medium and small exshgranted thatts were forced to halt their operations. Only the ones which are directly operating have continuously adhered to strict privacy regulations, often banning transactions from private wallets and still flagging transactions over a certain limit.
Other proposals were one time before again rolled out last year November for cryptocurrency issuers aimed at recovering illegal funds and primarily protecting investors from alleged malpractices. The average cost for miners’ fees or transaction costs is over again. pretty excessive compared to the average stock transaction price at Korean exmoves. Despite this fact, crypto enthusiasm has grown in South Korea.
Out of the 5.58 million traders, males in their 30s made up 21.7% of the population whereas females in the age of 30s constituted 9.5% and women over the age of 30 represented 9 percent of the dealing population.