The 24 licensed crypto exchanges recorded approximately $9.4 billion in daily transactions.
South Korea’s crypto market is expected to grow to 55 trillion ($45.9 billion) by the end of 2021, according to a new study by the country’s main financial regulator, the Financial Services Commission.
South Korea is considered one of the toughest crypto markets in terms of regulatory policy enforcement and should be aware of its new travel rules and your company requirements by 2021. However, despite the regulatory scrutiny of 2021, the Korean crypto market has reached new heights.
The FSC analysed transaction data from 24 licensed crypto exchanges and revealed that the daily turnover on Korean crypto exchanges reached 11.3 trillion won ($9.4 billion). The joint venture profit of 24 businesses was $3.37 trillion ($2.8 billion). A total of nine crypto exchanges recorded total losses last year.
Won’s dominance in the Korean crypto market The new crypto license regulation, issued in 2021, requires merchants to open real-name bank accounts affiliated with a bank certified by crypto exchanges. Nearly 200 small and medium-sized crypto exchanges have been excluded from trading due to banks’ refusal to participate or provide their services.
According to an FSC report published by the Korea Herald, there are a total of 15.3 million registered crypto exchange users, of whom only 5.58 million will be traded by 2021. Of these 5.58 million crypto users, approximately 3.1 million users own valuable crypto assets. Less than 1 million ($850), but 15% of merchants own more than 10 million ($8,500) virtual assets.
South Korea’s cryptocurrency restrictions should eliminate most medium- and small-scale exchanges in the country, and survivors must adhere to strict privacy rules, prohibit transactions from private wallets, and flag transactions above a certain amount. Another order was issued in November to token issuers aimed at recovering illegally earned funds, imposing criminal penalties, and protecting investors from future abuse.
Another order was issued in November to token issuers aimed at recovering illegally earned funds, imposing criminal penalties, and protecting investors from future abuse.
By the last quarter of 2021, Korean regulators are focusing on crypto taxes with a proposal to impose a 20% tax on crypto profits. However, the tax policy was extended for another year due to the lack of clear market constraints.
The country has recently focused on nonfungible tokens and may become one of the first countries to issue NFT tax regulations.