Crypto Traders Now Prefer South Korean Won Over Dollar

by

A Bloomberg report released not long ago indicates that the South Korean currency, the won, has become favored among cryptocurrency dealers, outpacing the US dollar in preference.

During the first three months of 2024, the Korean won brought in approximately $11 billion more in transactions than the US dollar did.

In South Korea, the rising preference for altcoins significantly contributes to this trend. The bulk of the trading activity involves smaller tokens.

Additionally, Upbit faces increasing challenges from rivals like Bithumb and smaller exchange platforms in the South Korean crypto market, as they strive to capture a larger share of the business.

Attracting crypto-friendly voters 

South Korea has been a significant player in the global cryptocurrency market for quite some time. With the parliamentary election approaching, country leaders have become aware of the growing appeal of digital assets. In an effort to attract crypto-supportive voters, political parties are proposing various incentives. These range from postponing taxes on cryptocurrencies to granting local Bitcoin ETF access from the US.

In March 2021, the daily trading amount for cryptocurrencies outpaced that of the South Korean stock market.

Tougher listing rules 

In the midst of the chaos, South Korean regulators are taking steps to ban questionable cryptocurrencies. Previously compromised tokens will not be allowed for listing, as reported by local media. Recently, domestic cryptocurrency projects like Galaxy (GXA) and Orbit Chain (ORC) have been hacked. Additionally, foreign token issuers must create a whitepaper tailored to the Korean market in order to list on local exchanges. Those who disregard these rules risk facing hefty fines or even imprisonment.

Read More

2024-04-16 18:35