South Korean Crypto Traders Surge 70% in Three Years as Adoption Goes Mainstream
Official data from South Korea’s Financial Supervisory Service shows the number of cryptocurrency trading participants on the country’s five largest exchanges (Upbit, Bithumb, Coinone, Streami, Korbit) rose 70.3% from 5.82 million in 2023 to 9.91 million in 2025. Combined trading volume jumped from 1,122.22 trillion KRW in 2023 to 2,411.32 trillion KRW in 2024 (+114%), then corrected to 2,139.89 trillion KRW in 2025. Drivers include clearer regulation (KYC/AML, real-name bank accounts, investor-protection rules), improved exchange security and onboarding, broader institutional interest, high smartphone penetration, and blockchain adoption by major Korean firms. The data suggests widening retail participation—almost one in five adults—while 2025’s volume pullback points to profit-taking and market consolidation rather than falling interest. For traders: expect greater market depth and potentially lower volatility over time, with future growth depending on ETF/institutional product developments, DeFi integration under compliance, macro conditions, and BTC/ETH performance.
Neutral
A large, sustained increase in trading participants (70.3%) signals stronger retail adoption and a deeper market structure, which is structurally bullish for liquidity and long-term market resilience. However, the significant volume correction in 2025 after a 2024 spike indicates profit-taking and consolidation that can temper short-term upside and increase episodic volatility. The net effect is neutral: positive for market maturity and depth (supporting reduced slippage and healthier order books), but not an immediate bullish catalyst for price spikes. Historical parallels include post-bull-run cycles where user growth outlasts volume spikes—e.g., 2017–2019 aftermarket adoption—leading to steadier markets. Traders should expect: short-term: bouts of volatility around macro news and large profit-taking events; medium/long-term: improved liquidity, more institutional products and potentially lower volatility, with price direction tied to macro factors and major assets (BTC/ETH) and regulatory developments like ETF approvals or new institutional offerings.