According to research firm Kaiko, the South Korean won surpassed the U.S. dollar to become the most used currency in cryptocurrency trading in the first quarter of 2024.
During the period, the cumulative Korean won trading volume on centralized cryptocurrency exchanges recorded $456 billion, and the US dollar recorded $445 billion. data showed it
“The Korean won surpassed the U.S. dollar based on cumulative trade volume in the first quarter of 2024,” Kaiko said in a data report.
South Korea has one of the most active cryptocurrency markets in the world. During the March cryptocurrency bull market, domestic cryptocurrency trading volume briefly exceeded the domestic stock market.
According to Kaiko, five fully licensed exchanges dominate the local market – Upbit, Bithumb, Coinone, Korbit and Gopax – with the leader, Upbit, holding more than 80% of the market share on most days. Second-place Bithumb recruited new users by conducting a zero transaction fee campaign at the end of 2023.
Major global exchanges Crypto.com and Binance have also begun to enter the rapidly growing Korean market. Earlier this month, Crypto.com presentation It was announced that it would launch a retail trading platform in Korea on April 29th. On the other hand, Binance has already Gopax’s major shares However, local regulators have repeatedly delayed approving Gopax’s transfer of ownership to Binance due to concerns surrounding legal issues in the United States.
Meanwhile, Korea’s general election On April 10, the opposition Democratic Party achieved a major victory, taking 175 out of 300 seats in the National Assembly. The Democratic Party has made several election promises related to revitalizing the local cryptocurrency sector, including approving a local spot cryptocurrency exchange-traded fund.
Strengthening regulations
The government is also working to put in place a regulatory framework for domestic investors. South Korea enacted the law in July 2023. Virtual Asset User Protection ActThe first law focused on cryptocurrencies is expected to come into effect in July of this year.
The bill aims to eradicate illegal market practices, including using non-public information to invest in cryptocurrency, manipulating market prices, and engaging in fraudulent transactions. Cryptocurrency service providers must also secure at least 80% of deposits in cold storage to protect user funds and enroll in insurance programs to potentially compensate users in the event of a security breach.
South Korea is currently developing Part 2 of the User Protection Act, which will focus on standardizing the issuance of cryptocurrency tokens and disclosing investor information.
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