In the first quarter of 2024, the South Korean Won surpassed the US dollar as the leading currency for global cryptocurrency trades, with a cumulative trade volume of $456 billion according to research firm Kaiko, reflecting a growing speculative interest in risky crypto assets in South Korea. The increase in Korean won-denominated trades has been partly driven by aggressive competition among South Korea’s digital currency exchanges, with smaller exchanges offering zero-fee trading promotions to attract traders away from the dominant player, Upbit. Additionally, South Korea’s complex regulatory landscape for cryptocurrencies is highlighted by ongoing legal actions against key industry figures and discussions between South Korean and US regulators on the classification of digital assets, demonstrating both interest and strict regulatory efforts in the crypto sector.
