Who would have thought, the crypto market in South Korea has now surpassed the stock market in terms of the number of users.
Based on the latest data as of the end of February 2025, the five major virtual asset exchanges in the country recorded a total of 16.29 million user accounts, according to SBS. This figure represents around 32% of the total population of South Korea and exceeds the number of stock investors, which is currently at 14.1 million. Indeed, that number includes duplicate accounts from users who have more than one account on various exchanges. But still, this surge makes the stock market look a bit quiet, at least from the perspective of the digital generation.
Crypto Investors Are Not Only Dominated by Young People
Usually, the crypto world is considered a playground for young people. However, a report from the CNF presents a different view. More than 9.6 million South Koreans are now investing in crypto, an increase of more than 50% compared to the previous year. And interestingly, one in four of these investors is over 50 years old. In fact, many of them hold large crypto asset portfolios. Just imagine, the grandfather who is usually busy playing chess in the park, may now be monitoring the Bitcoin chart on his tablet.
Most Investors Gained Profits and Expect More Ahead
Furthermore, a report from Despread Research shows that around 70% of crypto investors in South Korea made a profit throughout 2024. The assets that dominate their portfolios are Bitcoin (BTC), XRP, and Ethereum (ETH). Optimism continues to soar because 75% of them believe that the price of Bitcoin will break through $100,000 in the near future.
South Korea Public Officials Quietly Join the Crypto Crowd
No less interesting, it’s not just the general public who are interested in crypto. The South Korean Government’s Public Ethics Committee revealed that 411 of the 2,047 public officials are recorded as having crypto assets. The value is not small, around 14.4 billion won or equivalent to $9.8 million. The average ownership per official reaches 35.07 million won, around $23,927.
South Korea Cracks Down on Unregistered Exchanges
However, the government has not remained passive in response to this surge in interest. South Korea has begun to tighten supervision of unregistered foreign exchanges. A total of 17 foreign crypto exchange applications, such as Poloniex, KuCoin, and MEXC, have been blocked from the Google Play Store at the request of the FIU (Financial Intelligence Unit). The main reason? To protect local investors and prevent illegal activities such as money laundering.
Cross-Border Crypto Trading Set for Stricter Rules
On the other hand, the government’s next plan is to start regulating cross-border crypto trading activities. This regulation will be implemented starting in the second half of 2025. Later, all business entities that conduct cross-border transactions with virtual assets are required to register and report to the Bank of Korea every month. Maybe it’s time for this “digital money” to be treated like real money, especially with a turnover of no less large value.