The cryptocurrency sector in Asia is experiencing a resurgence, with Upbit, a South Korean exchange, joining the ranks of the top five global platforms. Data indicates that the Korean Won has supplanted the US Dollar as the preferred fiat currency for trading Bitcoin and other virtual assets.
Upbit Popularity and Trading Skyrockets
Upbit offers a vast selection of cryptocurrencies for trading on its platform, making it a leading choice for users in South Korea. With an impressive 80% share of the country’s crypto trading volumes, Upbit holds significant power in the South Korean market. This strong position positions Upbit as a formidable competitor to international players like Coinbase. Meanwhile, prominent market contenders such as Binance appear to be relinquishing their market influence in Asia.
It’s worth noting that Upbit’s surge in popularity occurred concurrently with increasing regulatory scrutiny in South Korea last year. At the time, Upbit’s customer base accounted for approximately 20% of its major banking partner’s total deposits. This fact drew sharp criticism from a South Korean legislator.
Despite efforts to protect investors following the demise of TerraUSD, a cryptocurrency launched by South Korean businessman Do Kwon in 2022, there’s a concern that fresh regulations could unintentionally boost Upbit’s market power.
In the revised regulatory guidelines, crypto exchanges are required to strengthen their reserve funds, obtain investor protection insurance, and enhance scrutiny over potentially illicit transactions. Consequently, Upbit announced its intention to process deposits and withdrawals worth over a million dollars last week.
On Tuesday, April 23, this week, Crypto.com, based in Singapore, announced that it would delay its entry into the South Korean market due to the requirement for additional consultation with regulatory authorities.
South Korea’s Mass Appeal for Crypto
In spite of the $40 billion collapse of TerraUSD, South Korean investors remain actively engaged in the cryptocurrency market, demonstrating their strong interest in risky but potentially profitable opportunities.
Approximately 10% of South Korea’s population, which is over 6 million people, participated in cryptocurrency trading through registered exchanges during the first half of the previous year, as indicated by official statistics. The growing enthusiasm for cryptocurrencies has evolved into a political issue in Seoul. During the recent parliamentary elections, various candidates made promises to delay digital asset taxes or lessen restrictions on investing in US Bitcoin ETFs.
In simpler terms, non-Bitcoin and non-Ethereum digital tokens, referred to as altcoins, account for about 80% of the trading activity on South Korean cryptocurrency exchanges. This figure is notably higher than the global average where these tokens make up approximately 50% of the trading volume, according to data from CryptoQuant. Ho Chan Chung, a marketing chief at the Korean analytics company CryptoQuant, confirmed this trend.
Previously, I put a larger portion of my investments into the stock market. However, these days, I have shifted my entire investment to cryptocurrencies. Unfortunately, the Korean stock market is not growing as expected, and corporations do not seem to prioritize their shareholders’ interests.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- MNT PREDICTION. MNT cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- OP PREDICTION. OP cryptocurrency
- ARKM PREDICTION. ARKM cryptocurrency
- EUR KRW PREDICTION
- VIC PREDICTION. VIC cryptocurrency
- NLS PREDICTION. NLS cryptocurrency
- Call of Duty: MW3 and Warzone Season 5 Reloaded Update Patch Notes Revealed
2024-04-25 07:33