According to fresh data from the Financial Intelligence Unit, the value of the cryptocurrency market in South Korea was 23 trillion won (about $16.1 billion) in the first half of 2022, down 58% from 32.2 trillion won in the same time at the end of last year (KoFIU).
In addition, the average daily trade volume, which was 5.3 trillion won (about US$3.7 billion) on a daily basis, decreased by 53% over the previous six-month period.
Virtual asset service providers’ overall operating profit in South Korea decreased by 62%, from 1.64 trillion won (or approximately 1.1 billion USD) to 0.63 trillion won (or about $441 million USD).
The KoFIU lists the Terra-LUNA issue, rising interest rates, less liquidity, and a general lack of confidence in cryptocurrencies as factors that contributed to the overall downturn in the local crypto market.
However, in Korea’s 51.78 million-person population, the number of know-your-customer (KYC) registered users increased by 24%, going from 5.58 million to 6.9 million.
Of the 6.9 million registered users, 73% had cryptocurrency worth no more than one million Korean won ($700.57).
The Financial Services Commission (FSC) oversees KoFIU, a national organization that fights against money laundering, terrorist financing, and improving financial transaction transparency.