In Q1, the Korean won overtakes the US dollar as the most-traded currency for cryptocurrencies

Crypto News– According to research firm Kaiko, the South Korean won surpassed the U.S. dollar as the most-used currency for trading cryptocurrencies in the first quarter of 2024.

In Q1, the Korean won overtakes the US dollar as the most-traded currency for cryptocurrencies

During this period, the cumulative trading volume denominated in won on centralized crypto exchanges reached $456 billion, outpacing the $445 billion reported in U.S. dollar trading volume.

Kaiko stated in their data report, In Q1 2024, the South Korean won surpassed the U.S. dollar in terms of cumulative trade volume.

South Korea boasts one of the world’s most active cryptocurrency markets. In March, during the crypto bull run, the local crypto trading volume briefly exceeded that of the country’s stock market.

The market is primarily dominated by five fully licensed exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. Upbit, in particular, commands over 80% of the market share on most days. Runner-up Bithumb initiated efforts to attract new users through zero-trading fee campaigns towards the end of 2023.

Major global exchanges, such as Crypto.com and Binance, have also targeted entry into the thriving South Korean market. Crypto.com announced the launch of its retail trading platform in the country on April 29. Meanwhile, Binance had acquired a significant stake in Gopax in 2023. However, local regulatory hurdles have stalled the transfer of ownership of Gopax to Binance, reportedly due to concerns related to its legal issues in the U.S.

Enhanced Regulatory Measures

The government is actively working on establishing a regulatory framework for domestic investors. In July 2023, South Korea passed the Virtual Asset User Protection Act, its inaugural legislation specifically targeting cryptocurrencies, which is slated to become effective this July.

This law is designed to eliminate illicit activities in the market, such as insider trading, market manipulation, and fraudulent transactions. It also mandates that crypto service providers secure at least 80% of deposits in cold storage to safeguard user funds and participate in insurance programs to compensate users in case of security breaches.