News View Non-AMP

South Korea’s Crypto Surge: Insights from FSC’s Latest Survey

South Korea's Financial Services Commission survey reveals 12% of the population, or 6.45 million people, engaged in crypto trading in late 2023. The market saw a 24% rise in daily transactions and a 53% increase in market capitalization. However, small investors held only $734 on average, and market risks persist.

Published by
Qadir AK

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.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Will Bitcoin Crash Again? Bearish Pattern Spotted

Amid the ongoing tariff war, Bitcoin (BTC), the world’s largest cryptocurrency by market cap, is…

April 5, 2025

Bitcoin Outperforming the Tech Stocks—Is It a Good Sign for the BTC Price Rally?

The Bitcoin volatility has risen over the past few weeks as the price has been…

April 5, 2025

What Are SEC’s New “Covered Stablecoins”? Tether’s USDT May Not Qualify!

In a rare and clear move, the U.S. Securities and Exchange Commission (SEC) has introduced…

April 5, 2025

Why Is Ethereum Price Underperforming in 2025?

Ethereum (ETH), the world’s second-largest cryptocurrency by market value, is going through a rough patch.…

April 5, 2025

FTX Rejects Nearly 400,000 Claims Worth $2.5 Billion – Here’s What Happened

FTX’s bankruptcy case has just taken a big step. Nearly 400,000 customer claims—worth up to…

April 5, 2025

Investors Turn Bullish on Solana as it Rises Above $120—Will SOL Price Bounce Back Past $150 This Month?

Solana has been gaining a huge amount of attention ever since it began to outpace…

April 5, 2025