The South Korean crypto market has been flourishing, with a recent report from virtual asset exchanges Upbit and Bithumb revealing significant wealth in the industry. According to the report, 3,759 individuals in South Korea hold high-value accounts, with each account exceeding 1 billion won, which is roughly $750,000. Democratic Party member Ahn Do-geol submitted the report, titled “Virtual Asset Holding Status,” to the National Assembly Planning and Finance Committee. Out of the 3,759 account holders, over 185 are in their 20s, making them the third-largest segment of crypto investors in the country.
The total value of virtual assets owned by these young investors is 967.2 billion won, with an average of about 5.228 billion won per person. Industry experts believe that these assets were either inherited or the result of savvy investment decisions made early in their careers. While the South Korean youth impact the crypto market, investors in their 40s hold considerable sway, with 1,297 individuals in this age group owning assets worth over 1 billion won each, totaling 12.497 trillion won collectively, averaging 9.29 billion won per person.
However, South Koreans in their 50s reign supreme in terms of total asset value. The report reveals that this age group has 930 individuals with accounts exceeding 1 billion won, holding assets worth 13.82 trillion won in total, averaging 14.86 billion won per person. The Virtual Asset Holding Status report also highlighted the widespread interest in cryptocurrencies among South Koreans, with approximately 7.7 million active virtual asset accounts on platforms like Upbit and Bithumb. These accounts have an average holding amount of 8.93 million won, indicating a significant interest in crypto assets among the general population.
Despite the positive growth and interest in cryptocurrencies in South Korea, concerns loom over the industry’s future. The country’s financial watchdog, the Financial Supervisory Service (FSS), has initiated investigations into unfair cryptocurrency transactions. The focus is on transactions made using undisclosed information and engaging in “price manipulation trading.” The regulators plan to analyze large datasets from regulated cryptocurrency exchanges and cooperate with other financial regulatory bodies, like the Financial Services Commission (FSC), to identify fraudulent transactions and prosecute violators.
As part of their efforts to crack down on fraudulent activities in the crypto market, the FSS will utilize data investigation probes through “on-site data seizures” and collaborate with international regulatory counterparts to analyze suspicious cross-border transactions and other anonymous activities. This proactive approach by South Korean regulators aims to ensure the integrity and transparency of the crypto market in the country while protecting investors from potential scams and fraudulent practices. Overall, the South Korean crypto market’s future looks promising, with continued growth and regulatory measures in place to safeguard the industry’s integrity.
