• South Korea is the third-largest cryptocurrency market in the world.
• The crypto boom first hit the country in 2017 and has grown extensively since then.
• South Koreans are drawn to cryptos due to their desire for quick economic growth.
Why Crypto Attracts South Korea Like Iron to Magnets
Crypto Miracle on the Han River
South Korea was the third largest cryptocurrency market in the world at press time, with more than 8% of total market share according to a market report previously published. The popularity of cryptocurrencies exploded with the 2021 bull run, during which Bitcoin and other top assets hit all-time highs. According to data aggregator Statista, daily trading volumes jumped 12x compared to 2020 and even surpassed shares traded on stock exchange.
The analyst Ignas pointed towards the ‘fast’ mentality of Korean lifestyle behind rapidly growing usage of cryptos. Infrastructure creation and technology adoption happened at breakneck speed transforming one of poorest nations to one of richest in short span, thus embedding desire for quick wealth into narrative. Economic growth considerably slowed down last decade bringing rampant youth unemployment along with it – situation that made investing in cryptos attractive option for many people.
The government has been proactive when it comes to regulations surrounding cryptocurrencies – in 2018 it imposed taxes on profits from trading digital assets but later relaxed these rules slightly by introducing tax exemptions for individuals earning up to 2 million won per year from crypto trading . This move allowed more citizens participate without fear of hefty fines or criminalization as result of taxation violation.
Growing Popularity & Adoption
Cryptocurrency exchanges have also seen massive rise over past few years as South Koreans are increasingly turning towards these platforms for investments instead traditional ones such as stocks or bonds . This trend is further solidified by increasing number local tech firms offering services related blockchain technology that facilitate easier access into digital asset space .
South Korea is quickly establishing itself as major player when it comes cryptocurrency markets . Government regulation , favorable conditions provided by exchanges , growing acceptance among citizens all contribute this surge popularity virtual assets within East Asian nation .