South Korea’s cryptocurrency market witnessed explosive growth in November, with trading volumes drawing close to those of the stock market and the number of crypto accounts surpassing 15 million. This surge has been fueled by a bullish trend in the crypto market, driven by optimism surrounding the pro-crypto stance of U.S. President-elect Donald Trump.
According to data from the Bank of Korea (BOK) submitted to Representative Lim Kwang-hyun of the Democratic Party, the total number of cryptocurrency accounts in South Korea reached 15.59 million in November. This figure, equivalent to nearly one-third of the country’s population, reflects an increase of 610,000 accounts from October.
Bitcoin, the leading cryptocurrency, has been at the center of this surge. Its price, which had dipped below $70,000 ahead of the U.S. presidential election, has skyrocketed by 50% in the past month following Trump’s electoral victory.
Rapid Growth in Crypto Accounts
The steady rise in the number of virtual asset investors has been evident throughout the year. Monthly account numbers grew from 14.74 million in July to 14.98 million in October, marking consistent increases of approximately 100,000 new accounts each month.
The BOK’s data, which includes account holders on the country’s leading cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, Huobi, and Gopax—was compiled following the enactment of the Virtual Asset User Protection Act. This new legislation, passed in July, allows the central bank to collect comprehensive data on cryptocurrency accounts.
By the end of November, the total valuation of virtual assets held by domestic investors had soared to 102.6 trillion won, a dramatic increase from 58 trillion won in October and 54.7 trillion won in September.
Threatening the Stock Market
The average daily trading volume on South Korea’s cryptocurrency exchanges reached 14.9 trillion won in November, nearly matching the combined trading volumes of the Kospi and Kosdaq stock markets, which stood at 9.92 trillion won and 6.97 trillion won, respectively.
“The government needs to be fully prepared to facilitate the stability of the crypto asset market while protecting the interest of users,” said Representative Lim.
Regulatory Challenges
The surge in crypto trading comes amid significant policy developments in South Korea. The National Assembly recently postponed the implementation of crypto taxation until 2027.
“The recent tax deferral is because it is the early stage of implementing new regulations, and we deemed monitoring necessary,” Finance Minister Choi Sang-mok explained during a press briefing in Seoul on December 18.
The Bank of Korea and other authorities are carefully studying domestic regulations, while also keeping an eye on potential changes in U.S. crypto policies under President-elect Trump. “If the new U.S. administration’s proposals become concrete, we plan to prepare a response,” Choi added.
The dramatic rise of cryptocurrencies in South Korea reflects growing public interest and optimism, but it also underscores the need for robust regulations to ensure market stability and investor protection.