Keeping An Eye On The South Korean Crypto Scene In 2023

At the beginning of 2020, there was little to rejoice about in the cryptocurrency sphere.

It was toward the end of the year when cryptocurrencies’ prices reached new highs, spreading their popularity worldwide and leading to a fever sweeping South Korea, especially in the following year. 

According to Statista, this East Asian country is considered the world’s third-largest cryptocurrency market.

Around 10 percent of the population there invested in digital currency when Bitcoin skyrocketed to its all-time high of 65,000 USD in November 2021. 

At the end of 2022, the prospects for cryptocurrencies didn’t look too bright, and Bitcoin, Ethereum, and other cryptocurrencies were approached with scepticism as investors would find themselves enduring the crypto winter.

However, seasoned investors have weathered other bear markets because they’re not out of the norm and know that the cryptocurrency’s infant stage makes the storm last slightly longer than assets in more mature markets.

Whether this year ends on a positive note can’t be determined by anyone. Still, by looking at the ETH price chart, we can understand why some investors and crypto enthusiasts are optimistic about the cryptocurrency’s future.

Following February’s gains, Ethereum soared by more than 30%, and the Bitcoin price is up by over 40%, which is good news for investors who bought the dip.

However, it takes understanding this new technology to invest money in it. As the South Korean population is among the most tech-savvy in the world and the country boasts openness toward digitalization and tech advances, it’s no surprise cryptocurrencies and blockchain-related projects are on fertile ground there. 

The South Korean government is taking steps to regulate the crypto space and provide much-needed protection and stability for crypto users, so let’s dive into this topic to discover how cryptocurrencies are approached in what is one of the most technologically advanced countries in the world.

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Increased Regulation

Cryptocurrencies have a wide range of use cases, including serving as stores of value, innovative payment methods, remittances for people who can’t access financial services, or tools to diversify an investment portfolio.

Related:  7 Cryptocurrencies That Are Worth Mining in 2022

The myriad possibilities call for governmental regulation to remove fraud, preserve financial stability, and protect investors while leaving room for innovation and experiments.

While some fear that the law will hinder this industry’s progress, admitting that it can also benefit the user is essential.

In South Korea, improved transparency and accountability in the crypto-sphere were only possible owing to increased regulation, a beneficial development that more nations want to accomplish.

One of the most notable moves in South Korea was to ask every cryptocurrency exchange to register with the government.

This undertaking has brought the necessary clearance, making many platforms shut down their operations as they were not operating legally and creating a safer user space. 

Binance, the world’s largest cryptocurrency platform and key infrastructure supplier, is also taking steps to make crypto investments and trading safer in South Korea.

The company looks to work with South Korean regulators to determine ways to support the local ecosystem, protect the users, and play down the negative effects of last year’s crypto failures.  

South Korea introduced more regulations to prevent illegal cryptocurrency activities like money laundering.

The citizens’ feelings about the new approaches were mixed, but the benefits are yet to be seen entirely.

Overall, they have delivered some highly-needed security and stability and helped boost the level of trust in the industry. 

NFTs’ Rising Popularity 

As South Korea is known for the enthusiasm and openness with which it embraces novelty and innovation in technology, it’s no surprise that (non-fungible tokens) NFTs are on the way up.

In fact, the country is a trendsetter in the NFT sphere, with interest in them increasing significantly over the last few years.

As Statista shows, the revenue in the NFT is expected to reach $90.77 million by the end of 2023.

Unsurprisingly, the number of NFT owners in this East Asian country rose from one thousand in 2020 to 760,000 the following year, and user penetration is projected to grow from 1.9% in 2023 to 2.0% by 2027.

Businesses around the world are leveraging this technology for marketing reasons, more and more people are seeing them as valuable assets and are jumping on the trend, and South Korean enterprises and investors make no exception. 

Related:  6 Good Reasons To Start Trading NFTs

The Growth Of DeFi

Short for decentralised finance, DeFi is an emerging financial technology aiming to enable cryptocurrency-based transactions and financial services.

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With the massive boom in crypto investments, institutions and individuals started to explore DeFi and discover the myriad advantages provided, like increased transparency and greater privacy.

The total value locked in these protocols reached $ 150 billion in 2022, and more Korean companies are embracing the idea of financial activities where no centralized authority is implicated in controlling or dictating operations.

They’re launching their own Layer 1 blockchain with unique currency for transactions to regain control of their ecosystems and build a user-owned economy. 

Therefore, in 2023, increasing demand for DeFi is expected as the world seeks more control and autonomy. 

More Crypto Trading Platforms 

After eliminating the cryptocurrency exchanges operating illegally in South Korea, 2023 will see a significant evolution in the operations of crypto platforms.

Exchanges work towards offering more compelling services, enhancing their platforms, expanding their services to serve a wider audience, providing a wide-ranging choice of cryptocurrencies, and adding up to the number of supported countries.

These trends demonstrate the growing maturity and demand for more diversified investment options.

Additionally, many platforms use new features like lending, staking, and margin tracking to appeal to more investors and traders. 

The South Korean cryptocurrency market is witnessing significant growth and transformation in many ways.

In 2023, the main trends explored above will shape a more secure and reliable industry, building user trust in cryptocurrency, eliminating bad actors, and attracting investors as regulation increases. 

Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon