South Korea has one of the most vibrant cryptocurrency industries in the world. The government has put in place laws that protect the citizens from the various risks associated with digital currencies. It also goes an extra mile to offer incentives that are meant to encourage more people and companies to venture into blockchain technology and cryptocurrencies.
South Korean on Average Invest $6,000 in Cryptocurrency
According to a recent report aired by Arirang Daily News on April 20th, a majority of Singaporeans are investing in various cryptocurrencies more than ever before. They are using fiat currency to purchase the digital assets from various exchange platforms.
The report indicated that 7.4% of 2,500 adult South Koreans who were polled had invested in one or more cryptocurrencies. Despite the numerous hurdles affecting the global cryptocurrency industry, it seems that more people are willing to invest in digital currencies.
The report also indicated that the average amount of money that an adult South Korean invests in cryptocurrencies is $6,000. This figure shows a 64% increase in investment from 2017 when the concept was relatively new in the country.
The survey also revealed most of the cryptocurrency buyers are in their 50s followed by the vibrant 30-40 year old South Koreans who have a better understanding of the technology and its potent power not only on the national economy but also on their financial stability.
As reported by many cryptocurrency news outlets, the increase in the price of bitcoin to $5,300 at the start of this month, April, is as a result of the bullish trend in the South Korean cryptocurrency market. Commonly referred to as Kimchi Premium, this market phenomenon is highlighted by local traders in the industry paying a premium for bitcoin on accredited cryptocurrency exchange platforms when measured in USD terms.
However, South Korean cryptocurrency market is not devoid of challenges. One of the exchange platforms in the country opted to terminate its operations last week due to market challenges. Another prominent exchange in the country, Bithumb is also struggling to stay afloat after losing $18 million to hackers in March.
Notably, Bithumb parent company secured a $200 million investment from one of the Japanese funds. The company also revealed plans to expand its operations to Japan and the United States.
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