More than 15 million people have cryptocurrency accounts on South Korea’s main exchanges, marking a significant milestone in the market following pro-crypto policy announcements by U.S. President-elect Donald Trump.
How Did the Crypto User Base Grow Over 30% in Just One Month?
The Bank of Korea disclosed that at the end of November, 15.59 million people held accounts with the country’s top five crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and GOPAX. That means an increase in investors amounting to 610,000 new investors starting from October. This has grown the number of registered investors, which amounted to 14.98 million, according to a report from the Bank of Korea to Representative Lim Gwang-hyun of the ruling Democratic Party.
Now, every third citizen of South Korea is involved in cryptocurrency either way. For a nation of 51.23 million, that is a huge level of engagement in virtual assets, and the country is witnessing a sea change in how people approach digital finance.
Trading and Investment Reach New High in November
November was a breakout month for South Korea’s crypto market, with average daily trading volume climbing to 13.9 trillion won ($10.2 billion), up from 4.7 trillion won ($3.4 billion) in October. This nearly matched the combined daily average of 9.8 trillion won ($7.5 billion) on the KOSPI and KOSDAQ.
Total cryptocurrency holdings surged to 102.6 trillion won ($70.3 billion), almost doubling October’s 58 trillion won ($39.7 billion). Meanwhile, the average individual holding jumped from 3.87 million won ($2,655) to 6.58 million won ($4,777). Deposits into crypto exchanges followed suit, more than doubling from 4.7 trillion won ($3.2 billion) to 8.8 trillion won ($6.03 billion).
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What’s Fueling This Boom?
Bitcoin was a major driver for this growth. BTC leapt from 105 million won ($76,000) at the end of October to 135.8 million won ($98,000) by late November. This sharp increase drew many first-time investors eager to jump on the bandwagon.
Can Regulations Keep Up with South Korea’s Growing Crypto Market?
In a month, South Korea’s cryptocurrency prices rose almost 30%, and this brings in the question of whether current rules are sufficient. The ruling Democratic Party, Rep. Lim Gwang-Hyun, thinks that the government has further strengthened the safety of investors and stabilized the market. While the Virtual Asset User Protection Act was introduced earlier this year, experts say much work is still to be done on everything from price manipulation to exchange security and levels of investor debt.
South Korea Doubles Down on Digital Assets Despite Impeachment Crisis
Recently, South Korea’s Deputy Prime Minister Choi Sang-mok reaffirmed the government’s positive stance on cryptocurrency despite President Yoon Suk-yeol’s impeachment. To stabilize markets, the Bank of Korea also intervened when the win hit a 2008 low, while President Han Duck-soo maintained consistent foreign policies to reassure allies. Choi confirmed that crypto regulation efforts remain on track, with a 2027 delay in crypto taxation reflecting caution.
Meanwhile, Korea Exchange Chairman Jeong Eun-bo has surged quick integration of crypto into the financial framework, warning that ignoring it threatens exchanges’ profitability. Although institutions remain hesitant, growing retail demand and government backing signal further crypto potential.
Conclusion:
South Korea’s crypto market has expanded rapidly, creating challenges in balancing innovation with investor protection. The country is quickly emerging as a global leader in digital assets, driven by Bitcoin’s soaring trading volumes. While the Virtual Asset User Protection Act provides some safeguards, experts suggest that further measures are necessary to address price manipulation, security concerns, and high leverage.
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Frequently Asked Questions (FAQs)
- How did the crypto user base grow over 30% in just one month?
BTC’s rapid price jump lured first-time investors, pushing accounts from 14.98M in October to 15.59M in November. - Which exchanges dominate South Korea’s crypto market?
Upbit, Bithumb, Coinone, Korbit, and GOPAX collectively host 15.59M accounts. - Why did November’s crypto trading volume soar to 13.9 trillion won?
Rising Bitcoin prices and heightened investor enthusiasm nearly doubled both trading volumes and deposits. - How much did the average individual holding increase?
It jumped from 3.87M won in October to 6.58M won in November, reflecting growing confidence in crypto. - What mainly fueled this crypto boom?
Bitcoin’s surge from 105M won to 135.8M won drew in newcomers hoping for quick gains.
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