The South Korean won has overtaken the U.S. dollar as the primary currency in global cryptocurrency trading. Research from Kaiko indicates that in the first quarter of 2024, transactions using the Korean won on centralized cryptocurrency exchanges amounted to $456 billion. This narrowly surpassed the $445 billion traded in U.S. dollars.
This shift in market dominance comes amidst fierce competition among South Korean crypto exchanges. Platforms such as Bithumb and Korbit have introduced zero-fee trading to challenge Upbit, which dominates the market with over 80% of the spot trading volumes.
The growing interest in cryptocurrencies has also seeped into South Korean politics. Issues regarding crypto regulation featured prominently in the recent parliamentary elections. Candidates put forward policies aimed at delaying taxes on digital assets and relaxing restrictions on investments in U.S. Bitcoin ETFs to appeal to younger voters. In response to the heightened activity, South Korean regulators have declared their intention to enforce stricter regulations starting in July to better protect investors.