Digital asset trading volume in South Korea exceeded its stock market volume in 2024, a report from the country’s central bank has revealed.
South Korean traders are globally known for their appetite for high -risk products with high returns, and digital assets Fit into this culture.
According to the report from the Bank of Korea (book), the re -election of Donald Trump in the United States in November went further and pushed the sector to record heights during the past three months of the year.
Book report show That the combined value of digital assets held by the country’s five main exchanges was 104 trillion won ($ 73.3 billion) at the end of the year. In South Korea, the five best replacements are counted – Upbit, Bithumb, Korbit, Coinone and Gopax – for over 95% of the market.
While the $ 73 billion accounts for only 4% of the $ 1.6 trillion stock market, digital assets were much more active than their equivalents to shares. Central Bank revealed that in December daily daily ‘Crypto’ trading volume Beat $ 12 billion, a sharp increase from $ 2.4 billion in October and $ 10 billion in November.
However, the combined daily trading volume on the country’s two main warehouses – Korean securities traders automated quotation (Kosdaq) and Korea Composite Stock Price Index (Kospi) automated $ 10.7 billion dollars.
Trump’s election in November was a Significant catalyst for the top of the trade volume. During the month following its victory on November 5, the daily trade volume on Korean exchanges was an average of $ 9.4 billion and contained a consistent lead over the first time the same year.
Skyrocketing speculative ‘crypto’ trade has caused concern among regulatory authorities, which are afraid that most retailers are unprepared for the sector’s volatility.
“There is doubt about the type of positive impact that virtual assets have on the real economy. Between the two markets the money should go to shares,” commented Kim Byoung-Hwan, who is the head of it Commission for Financial Services (FSC).
It’s not just the volume of trade. In March, new information revealed that South Korea now has more digital assets than stock trader. A report submitted to legislators revealed That over 16 million Koreans have accounts with the five best exchanges and translated to 32% of the population. In a separate report, the book places this number of 18.25 million, or 35% of the population. However, only 14.1 million Koreans had a share account at South Korea’s securities storage from December last year.
Local traders have dared in addition to direct trading and are looking for risky products, including much exploited offshore ‘Crypto’ Switch -traded funds (ETFS). In December last year an ETF promised to give twice the return from BTC Speculator Micro Strategy Inc. (Nasdaq: mstr) and another promising twice the return on Blackrock’s (Nasdaq: Blk) Ether ETF was among the ten most purchased offshore value paper in the country.
Book welcomes digital asset innovation, but supervision is not negotiable
Elsewhere, the book says that it welcomes innovation for digital access, especially in the payment sector, but warned that it will prioritize consumer protection and market stability.
In its 2024 payment and settlement report, top bank discussed Innovations in the payment sector, with digital assets, StablecoinsThe Central Bank’s digital currencies (CBDCS) and blockchain with appearance.
At Stablecoins, the book recognized that they are no longer limited to “crypto” payments and are increasingly used in cross -border transfers and as a bridge to traditional financing. While USD-PEGGED STABLECOINS Dominating the market has been a consistent growth in won -gave alternatives, which, even though they are better suited for the Koreans, can pose greater risk.
“Korea Bank emphasizes the necessity of establishing a regulatory framework for Stablecoins to ensure monetary and financial stability,” the report says.
Book emphasized its three concerns with Stablecoins: redemption guarantees, operational resilience and the openness of the reserve resources. And even though it is not the primary “crypto” guard, the central bank will not sit on the sideline and intend to be actively involved in the preparation of rules for the sector.
“The bank considers deeper involvement in regulatory discussions around Stablecoins, especially when their use crosses each other with domestic financial infrastructure,” it said.
Concerns about Stablecoins extend beyond Korea. This week, a piece of paper by the European Central Bank (ECB) decided the increase in USD-peggled Stablecoins, whose dominance will only increase during Trump’s Pro-Crypto administration. The essay, which is not yet to be published and where reported on By Politico, the European Union advocates to change its markets in the Crypto Assets (MICA) framework to handle the threat. The essay did not fit well with the European Commission, which warned the regional bank against fear and intrusion into its legislative jurisdiction.
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