Catenaa, Saturday, April 26, 2025-South Koreans are holding a record $73.4 billion in cryptocurrency, according to the Bank of Korea (BOK).
The total crypto market capitalization on domestic exchanges surpassed 100 trillion won ($73.4 billion) in December 2024, marking a significant increase from the $41 billion held just two months earlier.
The surge came in the aftermath of Donald Trump’s 2024 U.S. presidential election win, with many South Koreans responding to his “crypto-related manifesto promises.”
Transaction volumes also spiked, with daily trading hitting 17.2 trillion won ($12.1 billion) at the close of 2024, a five-fold increase from October.
However, the BOK also noted that domestic factors played a significant role in the crypto boom, particularly the implementation of the Virtual Asset User Protection Act in July 2024. The act aims to protect users and regulate unfair trading, and it is expected to be further refined after South Korea’s upcoming presidential elections in June.
Despite South Korea’s crypto market growth, local firms are still prohibited from launching crypto assets or using their balance sheets for crypto purchases.
These regulatory obstacles are expected to be addressed later this year, which could enable further expansion.
The BOK also expressed concerns about the growing popularity of stablecoins, warning that their widespread use could disrupt monetary policies and financial stability.
