South Korea cryptocurrency trading volume has increased thanks to the many positive changes in the cryptocurrency market. As noted by Bitcoinist, there is a significant increase in Korean (KRW) digital currency trade in the country.
KRW Cryptocurrency Increase 2018
Recent reports indicated the trade volume since October 2018, has been steadily increasing in South Korea. Some reports suggest that in certain days the total trading that took place in the country accounted for almost 50% of the global cryptocurrency market share.
The trend is a change from the normal trading activities we have been experiencing throughout this year. Before October, KRW cryptocurrency trading volumes were constant despite efforts by proponents of this new technology to promote it and encourage more Koreans to invest in the currencies. Notably, between June and September, digital currency trading volume in South Korea appeared to be shrinking. The most plausible reason for this trend is that most Koreans were not comfortable purchasing cryptocurrencies due to fluctuations in the market prices.
Stock Market Trouble and Exchange Hacks
The shrink in South Korea cryptocurrency trading volume between June and September was also caused by changes in the stock market as well as hacking of several renowned cryptocurrency exchange platforms. For example, Bithumb and Coinrail were both hacked, and cryptocurrencies worth millions of dollars were stolen in June this year.
As a result of the unfortunate incidents, the two platforms suspended all withdrawals and deposits to prevent further losses. The decision had a severe impact on trading volumes, but the management teams were quick to resolve the problem before it got out of hand. Note that Bithumb is the most preferred cryptocurrency exchange platform in South Korea and so the hacking had a significant impact on the perception of traders.
Some cryptocurrency analysts are of the idea that the South Korea Cryptocurrency trading volume upswing is as a result of the turbulence in the national stock exchange market. Institutional and retail investors in the country are shifting to Bitcoin because its value in the market looks more stable compared to other cryptocurrencies.
Overview of South Korea Cryptocurrency Industry
This year 2018, the government of South Korea through its financial regulator approved the use of cryptocurrencies in the country. It also recognized digital currencies as legal entities. The two decisions had a significant positive ramification on the industry as evident from the price spikes immediately after the announcements.
In many ways, the decisions almost legitimized the lucrative and ever-growing cryptocurrency economy in South Korea. It is also important to note that other countries provide favorable conditions for digital currencies commerce and blockchain technology to thrive, but South Korea financial regulator is undaunted about the Initial Coin Offering ban.
In a recent interview, the chairperson of FSC told parliament that the uncertainty of initial coin offerings makes it difficult to come up with regulations. The comments were made despite calls for the regulator to reconsider the ban.