The latest overwhelmingly adopted trend in South Korea these days is the cryptocurrency investment. The trend has been labeled as “crypto fever” in South Korea by local news outlets. Daily crypto trade volume is reportedly exceeding US$ 7 Billion approximately.
A crypto trade volume analysis relating to South Korea has been carried out by the local language daily newspaper, Dong-A. In its latest public, a news was covered by the newspaper which suggested that crypto trading in South Korea has broken its past records. It noted that the daily crypto trade volume in South Korea is exceeding US$ 7 Billion.
Dong-A also pointed out that South Korean crypto investors continued to engage in crypto trading within this range for the period between 1st Jan till the end of February 2021.
It was told that the data was provided by a Parliamentarian named Kim Byeong-wook who is a member of the ruling party. On the other hand, Byeong-wook acquired the data from local crypto exchanges such as Korbit, Bithumb, Coinone, and Upbit.
The study revealed that at least 42% of the daily trade volume was transacted through KOSPI – a South Korean stock exchange. It was also pointed out by Dong-A that such figures have never been published before. In fact this is the first time when the figures were acquired from top 4 South Korean crypto exchanges. However, there are hundreds of crypto exchanges operating in the country. Other notable crypto exchanges are GOPAX, Probit Korea, Huobi Korea, Bitsonic, OKCoin Korea and Hanbitco.
It was further revealed that in 2020 overall trade volume recorded by these top 4 crypto exchanges was approximately US$ 316 Billion. However, the trade volume between January and February 2021 has already broken 2020’s record in less than 2 months period.
According to local news and media outlets, the majority of South Korean crypto investors are men under ages 20 to 39. It was reported that the Government is concerned that the majority of investors are too young to take risks of investing in crypto. But when companies such as Paypal, Microstrategy and Tesla make headlines, the so-called crypto fever increases in South Korea. The media suggested that while in the rest of the world crypto investment is a trend but in South Korea, it is a “fever”.
Now the women too have been found investing in crypto, especially Bitcoin, suggested Dong-A.
For some critics, the concerns of the Government are also serious. They were of the view that there is a dire need of regulating crypto in South Korea. In the absence of such a regulatory framework, there is high chance that more and more youth will be taking part in crypto investment. However, they do not consider the risks but rather look at the price surge of any particular crypto asset.