South Korean Traders Propel Digital Asset Market Surge

South Korean Market Share Soars to 12.9%

Data from CCData reveals a noteworthy increase in South Korean exchanges' market share, rising from 5.2% in January to 12.9% in November. This surge coincides with a general uptick in digital asset trading volume observed in October and November.

Altcoin Surge Fueled by South Korean Investors

The digital asset market, experiencing a rally since early October, is witnessing heightened enthusiasm surrounding the potential authorization of U.S. exchange-traded funds for digital assets. Bitcoin's value has surged by nearly 40% in the past month, while smaller tokens like Solana and Avalanche have seen even more substantial increases.

South Korean Retail Investors Drive Altcoin Trading Volume

CryptoQuant analysts point out that South Korean traders are playing a significant role in the increased trading volume of altcoins. The absence of a futures market for retail investors in South Korea has led them to explore substantial leverage opportunities in the crypto market, particularly with altcoins. This increased interest has contributed to the remarkable expansion of the altcoin market compared to other investment assets.

South Korea's Crypto Community Faces Regulatory Scrutiny

Despite setbacks such as Terra's collapse in May 2022, South Korea's robust blockchain and crypto community continues to grow. In response to the evolving landscape, South Korean regulators are actively monitoring the over-the-counter (OTC) crypto market to prevent misuse for criminal activities.

Regulatory Concerns and Stricter Oversight

The South Korean Supreme Prosecutors’ Office Criminal Law Academy recently organized a session addressing challenges and issues related to virtual currencies. Deputy Chief Prosecutor Ki No-seong and Park Min-woo from the Financial Services Commission expressed concerns, emphasizing issues associated with over-the-counter (OTC) trading and the deposit business of virtual currencies. They underscored the necessity for stricter regulations to curb potential avenues for illegal activities on these platforms.