South Korea's Financial Intelligence Unit (FIU), operating under the Financial Services Commission (FSC), released a groundbreaking report on the state of the domestic cryptocurrency market. Despite tightening regulations, the market surged to $45.9 billion in 2021, attracting 5.58 million active traders.
Key Findings from the FIU Report
Market Growth Amid Regulatory Challenges
- 2021 Market Value: 55.2 trillion KRW ($45.9 billion)
- Total Trading Volume: 2,073 trillion KRW ($1.72 trillion)
- Daily Average Trade: 11.3 trillion KRW ($94 billion)
👉 How South Korea's crypto regulations compare globally
Dominance of KRW in Crypto Trading
- KRW-Based Trades: 95% of total transactions
- Major Exchanges: Upbit, Bithumb, Coinone, and Korbit (only platforms with KRW trading pairs)
- Operating Profit: 3.37 trillion KRW ($28 billion) across 24 exchanges
Unique Market Characteristics
- Listed Assets: 623 cryptocurrencies traded, with 65% being "exchange-exclusive" tokens.
- BTC/ETH Share: Just 27% of KRW market volume (vs. ~60% globally).
User Demographics:
- Age Groups: 30s (31%), 40s (27%), 20s (23%)
- Gender Split: 67% male, 33% female
- Average Holdings: 830 USD or less (56% of users)
Regulatory Landscape
- Exchange Compliance: Only 29 of 60 applicants passed FSC review
- Real-Name Accounts: Mandatory for KRW trading, limiting access to 4 major exchanges
- Future Plans: Biannual market monitoring by FIU
FAQ Section
Q: Why is KRW dominant in South Korea's crypto trades?
A: Strict banking policies require real-name verified accounts, making KRW pairs exclusive to compliant exchanges.
Q: How do Korean traders differ from global counterparts?
A: They show higher preference for local tokens (65% of listed assets) over BTC/ETH.
Q: What's the average trade size?
A: 622 USD per transaction, with users averaging 4 trades daily.
👉 Explore compliant crypto trading platforms
Market Implications
The report underscores South Korea's position as a major crypto hub despite regulatory hurdles. With structured oversight and unique trading patterns, the market demonstrates resilience and continued growth potential.