South Korea’s Crypto Market Reaches Saturation Point: 16 Million Users and Counting

South Korea’s cryptocurrency market has officially surpassed 16 million users, a figure representing over 30% of the nation’s population. This significant milestone, reported by Yonhap News Agency, raises questions about market saturation and future growth potential.

The data, compiled from the five largest domestic exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), indicates a remarkable surge in cryptocurrency adoption. While individuals with multiple accounts were counted only once, the sheer number underscores the widespread interest in digital assets within the country.

Industry experts offer contrasting views on the future. Some believe the market has reached its peak, while others point to the significant growth potential compared to the established stock market. One unnamed official quoted by Yonhap stated: “Some believe the crypto market has reached a saturation point, but there is still an endless possibility for growth compared with the matured stock market.”

This surge in user numbers follows a noticeable spike after the US Presidential election in November. The number of crypto users jumped by over 600,000, reaching 15.6 million, holding a collective 102.6 trillion South Korean won ($70.3 billion) in crypto assets.

Interestingly, this surpasses the number of individual investors in the South Korean stock market, which stood at 14.1 million as of December 2023, according to the Maeil Business Newspaper. This highlights the significant shift towards cryptocurrency investment in the country.

The involvement of public officials further emphasizes the widespread acceptance of cryptocurrencies. A report by the country’s Ethics Commission for Government Officials revealed that 20% of surveyed officials hold a combined 14.4 billion won ($9.8 million) in crypto assets.

Despite this growth, regulatory efforts continue. The Financial Intelligence Unit recently published a list of unregistered platforms and those blocked from the Google Play store, highlighting the ongoing efforts to regulate the market.