- South Korea now has over 9.6 million crypto investors, up more than 50% compared to the previous year.
- One in four crypto investors in South Korea is aged 50 or older and many are holding large crypto portfolios.
In South Korea, the number of domestic investors holding digital currencies such as Bitcoin has soared by more than 50% in the past year. The figure now stands at more than 9.6 million. Interestingly, one in four of these investors is over 50 years old.
South Korea: Over 3 Million New Investors Enter the Crypto Space
Furthermore, data received by Democratic Party lawmaker Ahn Do-jae from five domestic crypto exchanges—namely Upbit, Bithumb, Coinone, Korbit, and Gopax—shows that by the end of last year, there were more than 9.6 million active and tradable accounts.
The previous year, the number was only around 6.3 million. This means that there are more than 3 million additional people trying their luck in the crypto world in just a year.
The total amount of crypto assets they hold is truly impressive. Its value reaches more than 105 trillion won (about $77.78 billion). For comparison, that’s equivalent to buying more than 150,000 small apartments in Seoul. Not a number to be taken lightly, especially considering that most of the owners are not from institutions but retail investors.
Older Generations Are Catching Up With Crypto Trends
On the other hand, the age group that was previously considered far from technology is starting to catch up. Investors in their 50s are recorded at around 1.75 million people, an increase of more than half from the previous year.
Meanwhile, those who have reached the age of 60, the number jumped from 371,800 to 636,700 people. It is possible that some of them follow their children or grandchildren, but in the end they actually make more money.
Half of South Korea’s Crypto Whales Are Over 50
What makes you shake your head is that many of these senior investors also fall into the “big player” category. Of the approximately 9,100 accounts with asset ownership of more than 1 billion won, almost half are owned by people over the age of 50.
On average, these mature investors hold crypto assets worth 2.15 billion won per person. It is no wonder that more and more young people are starting to ask their fathers or even grandfathers to teach them how to trade.
FIU Pulls the Plug on Foreign Crypto Platforms
However, amid this rapid growth, the South Korean government is not sitting idly by. CNF reports that the country’s Financial Intelligence Unit (FIU) has begun cracking down on foreign crypto exchanges that are not yet officially registered.
A few of the names under criticism are already familiar among the worldwide crypto community. Apart from love messages, the FIU has started restricting access to its websites running Korean domains. Roughly speaking, their cords have been taken out rather than they were only chastised.
Supervision Will Be Tighter in 2025
Local regulators are also increasingly vigilant about the potential misuse of crypto platforms for illegal purposes. Starting January 19, 2025, they will monitor transactions suspected of being related to illegal foreign exchange trading. It is not just one institution that is moving.
Financial authorities, the Ministry of Justice, and the Central Bank of Korea will work together in this supervision. So for those who think they can smuggle money through digital wallets, you should think again.
CBDC Pilot Set to Launch With 100,000 Participants
Apart from these tightening measures, South Korea is also preparing to launch a pilot project for a central bank digital currency (CBDC). Still from the CNF report, the Central Bank of Korea will start a CBDC trial in April 2025. The program will involve 100,000 participants and several major banks.
Participants will later be able to convert their bank balances into digital tokens and use them to shop at certain merchants. The payment process will also be tested in a real-time system.
Credit: Source link
