The South Korean won has become the most important currency in cryptocurrency trade, with more trades than any other currency globally. A brand-new study from Kaiko says that in the first three months of 2024, the Korean won was used to buy and sell $456 billion of cryptocurrencies on centralized platforms. This was a significant shift in trade power because it was more than the $445 billion that was moved in dollars during the same time.
South Korean Exchanges Drive the Rise of the Won in Crypto Trading
The South Korean won is becoming more valuable in crypto trade because South Korean markets are getting stronger. To get traders to switch from Upbit, which controls more than 80% of spot trading traffic, to smaller platforms like Bithumb and Korbit, which offer free trading.
Bloomberg market data shows South Korean buyers are more interested in altcoins than Bitcoin and Ether, the more well-known cryptocurrencies. Altcoins are smaller, more risky digital currencies. More than 80% of all trade in South Korea is done with these altcoins, which shows how active the market is.
South Koreans talk about politics differently now that they are more interested in cryptocurrencies. Crypto control came up a lot during the recent parliamentary elections. Politicians wanted to get the attention of younger voters by suggesting that taxes on digital assets be put off and the amount of funds that can be invested in U.S. Bitcoin ETFs be lowered.
But doubts about rules have grown as the crypto world grows so quickly. It was bad that Do Kwon’s TerraUSD stablecoin lost $40 billion. They said they would make the rules stricter to protect businesses in South Korea better. These rules will be law starting in July.
Even though South Korea has problems with regulations, the number of people using cryptocurrencies keeps growing. Leading platforms like Crypto.com have said they want to offer services to individual traders in the country. This shows how the country’s role in the global cryptocurrency market is changing.
The South Korean won is now the most important cryptocurrency worldwide. That means the country is becoming stronger and more active in digital assets. It’s also the start of a new era in the history of currency and technology.
