South Korea’s crypto asset market has seen massive growth by the end of 2021. The market valuation stands at $ 45.9B (55.2 trillion won). The country’s primary financial regulator, The Financial Services Commission, released the data.
A unique survey was conducted by the financial regulator in light of data compiled from a total of 24 authorized cryptocurrency exchange operators. These cryptocurrency exchange operators have shown that the total average daily volume transactions have increased and reached $ 9.4 billion.
Even the number of users represented a positive change and was close to 5.58 million, according to the same survey conducted by The Financial Services Commission.
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The market for cryptocurrencies continues to grow despite tight controls
It is not uncommon for South Korea to have strict rules on policy implementation. The country has consistently given headlines for most of 2021, get to know your company and news about travel rules. Despite all these regulatory policies, the digital asset market has grown significantly in 2021.
About 95 percent of all transactions are accounted for by Korean-on cryptocurrency operators such as Upbit, Bithumb, Coinone and Korbit. The total operating profit of the 24 licensed exchanges is about $ 2.8 billion. A total of nine cryptocurrency exchange platforms are responsible for net losses.
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Specialization of FSC report
A new licensing regulation issued in 2021 considers One’s dominance in the Korean crypto market. For this new license to be issued, crypto exchanges are required to provide real-name bank accounts to merchants with a certified bank association. With this new form of regulation, about 200 small to medium-sized crypto businesses were forced out of business because banks refused to share and offer their services.
According to the FSC report, there are a total of 15.3 million crypto exchange users of which only 5.58 million people participated in the business in 2021. Of these 5.58 crypto users, about 3.1 million users own this low-value digital asset of one million won, which is about $ 850, while 15% of traders own more than 10 million won, or 8,500.
As mentioned above, due to a new licensing regulation, many medium and small exchanges were forced to close their activities. Only those who are currently working consistently adhere to strict privacy rules, often prohibiting transactions from personal wallets and flagging transactions above a certain limit.
Other proposals were also introduced in November last year for token issuers to recover illegal funds and protect investors from initially alleged misconduct. The average rate of miner’s fees or transaction rate is also much higher than the average stock transaction rate on the Korean exchange. Despite this fact, crypto enthusiasm has grown in South Korea.
Of the 5.58 million businessmen, 30-year-old men represent 21.7% of the population, 30-year-old women 9.5% and women over 30 represent 9 percent of the business population.