A recent report from virtual asset exchanges Upbit and Bithumb in South Korea revealed that there are 3,759 individuals holding high-value accounts in the country’s crypto market. These individuals each have accounts exceeding 1 billion won (approximately $750,000). Out of this group, over 185 individuals in their 20s own virtual assets, making them the third-largest segment of crypto investors. The total value of virtual assets owned by these young investors is 967.2 billion won, averaging about 5.228 billion won ($3.91 million) per person. Industry experts suggest that the assets held by these young investors could be either inherited or the result of savvy investment decisions made early in their careers.
Additionally, investors in their 40s hold considerable influence over the South Korean crypto market, with 1,297 individuals in this age group owning assets exceeding 1 billion won. The collective total of assets held by this group stands at 12.497 trillion won, averaging 9.29 billion won ($6.95 million) per person. South Koreans in their 50s are at the top of the food chain in terms of total asset value, with 930 individuals holding accounts exceeding 1 billion won. This age group leads in total value with assets worth 13.82 trillion won, averaging 14.86 billion won ($11.11 million) per person, surpassing other age groups. The Virtual Asset Holding Status report also revealed widespread interest in cryptocurrencies among South Koreans, with approximately 7.7 million active virtual asset accounts on platforms like Upbit and Bithumb. These accounts have an average holding amount of 8.93 million won, indicating a strong interest in cryptocurrencies among the general population.
Concerns are looming over the growth of the crypto industry in South Korea, as the country’s financial watchdog, the Financial Supervisory Service (FSS), has initiated investigations into unfair cryptocurrency transactions. This includes transactions initiated using undisclosed information and those engaged in “price manipulation trading.” Regulators are sifting through large datasets from regulated cryptocurrency exchanges and reports from the Financial Supervisory Service to identify fraudulent transactions and prosecute violators. The Financial Services Commission (FSC) will utilize data investigation probes, including on-site data seizures, and collaborate with international regulatory counterparts to analyze suspicious cross-border transactions and other anonymous transactions.
It is evident from the report that cryptocurrencies have gained significant traction in South Korea, especially among the younger generation. The presence of high-value accounts held by individuals in their 20s, 40s, and 50s highlights the diverse demographic of investors participating in the crypto market. The substantial amounts of assets held by these investors indicate a strong belief in the potential of cryptocurrencies as a lucrative investment opportunity. However, the regulatory scrutiny and investigations into unfair transactions signify the challenges and risks associated with the burgeoning crypto industry in South Korea. As the market continues to evolve, it will be crucial for regulators to strike a balance between fostering innovation and protecting investors from fraudulent activities.
