FSC Survey : South Korea’s Crypto Market Sees Significant Growth in Late 2023

South Korea

The post FSC Survey : South Korea’s Crypto Market Sees Significant Growth in Late 2023 appeared first on Coinpedia Fintech News

South Korea’s Financial Services Commission has released a survey report by the Korea Financial Intelligence Unit. 

Survey Overview and Methodology

The survey highlights significant growth in the country’s virtual asset market during the second half of 2023, revealing that 12% of South Korea’s population, amounting to 6.45 million were engaged in crypto trading, however, only $734 cryptocurrencies held by small investors.

The survey covered the second half 2023, from July 1 to December 31, 2023, aiming at 29 virtual asset business operators, including 22 exchanges and 7 wallet/custodian services. 

The survey’s findings were possible because of the data submitted by these businesses. However, responses from individual businesses remain confidential. 

Key Findings from the FSC Survey

Growth in Trading Volume and Market Capitalization

The daily average transaction size for virtual asset traders shot up by 24%, hitting 3.6 trillion won, compared to 2.9 trillion won in the first half of 2023. 

At the same time, the total market capitalization of virtual assets saw a whopping 53% increase, rising from 28.4 trillion won to 43.6 trillion won by the end of December 2023.

Operating Profits and Won Deposits

The survey found that virtual asset businesses saw an 18% increase in total operating profit, rising from 228 billion won to 269.3 billion won. Moreover, deposits in won held by these businesses grew by 21%, from 4.0 trillion won to 4.9 trillion won, indicating a boost in investment sentiment and market activity in the latter part of the year.

User Demographics and Investment Patterns

The number of people making transactions increased by 6.4%, from 6.06 million in the first half to 6.45 million by the end of 2023. The survey found that the most active age group in crypto trading was folks in their 30s. Interestingly, about 4.55 million users were small investors holding less than 1 million won (about $734) in cryptocurrencies.

Virtual Asset Listings and Price Volatility

The number of virtual asset items traded decreased slightly by 3.5%, going from 622 to 600. This was due to an increase in new listings and trading suspensions. 

The number of independently listed virtual assets, managed by only one domestic business operator, decreased by 9.3%, indicating market consolidation. Despite these changes, virtual asset prices remained highly volatile at 61.5%, signalling ongoing market risks.

Business Closures and Regulatory Concerns

The survey showed that more virtual asset businesses are closing down, with four operators shutting down by the end of December 2023. This highlights the importance of being cautious when trading and storing virtual assets with these operators.

Source: https://coinpedia.org/uncategorized/fsc-survey-south-koreas-crypto-market-sees-significant-growth-in-late-2023/

Source: https://webfulnet.com/

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