Over the first six months of this year, South Korea’s operating profits of virtual marketplace operators has increased by 82% to 227.3 billion won while deposits rose by 11% to 4 trillion won.
According to a Monday report by the Financial Services Commission (FSC), Korea’s virtual asset market capitalization soared to 28.4 trillion won ($21.1 billion), indicating a 46% or 9 trillion won increase in the January-June period.
Korean Crypto Exchanges Losing Volume
The global virtual asset market capitalization also grew to 154 trillion won showing a 53% increase. As of June, Bitcoin prices rose by 81% to $30,441, when compared to the end of last year.
The FSC conducted a survey on a total of 35 virtual asset operators, including 26 crypto exchanges in the country. The study showed that the average value of daily crypto transactions declined despite an increase in the value of the crypto market.
The twenty six (26) crypto exchanges saw transactions dipped by 1.3 percent to 2.9 trillion won in the January-June period. The number of individual and corporate crypto traders also decreased by the end of June.
Of the individual traders, those in their 30s accounted for the biggest share and more than 67% held virtual assets worth less than 500,000 won.
The FSC’s data also showed that about 622 types of cryptocurrency, including Bitcoin, Ethereum, Ripple and Dogecoin, were traded in the country in the first half of the year.
Additionally, a total of 169 crypto coin were newly listed in the first half, while 115 coins trading activities were suspended due to reasons such as project risk, investor protection, or others.
The maximum drawdown rate of cryptocurrencies, which shows the price volatility, stood at 62% as of the end of June, down 5% points from the end of December.
Crypto Laws for User Protection
South Korea records this significant profit as the country plans to implement laws towards building a legal framework for virtual assets by next year.
In July, the country’s regulators passed a new crypto bill that aims to protect investors and ensure transaction transparency and market discipline. Under the law, those who unfairly trade virtual assets can be sentenced to prison and fined.
