The South Korean won has emerged as the dominant currency in global cryptocurrency trading, dethroning the long-reigning U.S. dollar from its pinnacle.
Recent data from the esteemed research entity Kaiko reveals that transactions involving the South Korean won on centralized cryptocurrency exchanges surged to an astounding $456 billion in the initial quarter of 2024.
This impressive figure marginally outstripped the $445 billion worth of transactions conducted in dollars during the same timeframe.
This seismic shift in trading supremacy can be ascribed in part to the fierce competition unfolding among South Korean exchanges.
Notably, smaller players such as Bithumb and Korbit have unleashed aggressive zero-fee trading campaigns, strategically aimed at diverting market share from the dominant Upbit, which presently commands over 80% control of spot trading volumes.
Insights gleaned from Bloomberg’s market analysis point to a notable trend among South Korean traders: a predilection for smaller, more speculative digital currencies, commonly referred to as altcoins, over their more established counterparts like Bitcoin and Ether.
Indeed, these altcoins collectively command an impressive 80% share of the country’s bustling trading activity.
The burgeoning interest in cryptocurrencies has not gone unnoticed in the realm of South Korean politics.
In the recent parliamentary elections, the discourse surrounding crypto regulation took centre stage, with candidates advocating policies aimed at deferring taxes on digital assets and loosening restrictions on U.S. Bitcoin ETF investments, strategically courting the allegiance of younger voters.
In the wake of the staggering $40 billion collapse of the TerraUSD stablecoin, spearheaded by Do Kwon, regulatory authorities in South Korea have pledged to institute more stringent measures to fortify investor safeguards, slated to come into effect in July.
Despite the regulatory headwinds, the trajectory of crypto adoption in the country remains upward-bound.
A case in point is the recent announcement by Crypto.com, one of the leading exchanges, detailing plans to roll out tailored services catering to retail traders in the South Korean market.
