Lately, South Korea has witnessed surging crypto trading volumes with many pointing to the current turbulence in the crypto market. The year began quietly, and there was a significant contraction in trading volumes in the middle of the year.
However recent statistics reveal that there is a considerable increase in Korean Won (KWN) crypto trades.
Q4 Has Seen The KRW Crypto Trading Increase
A recent chart prepared by CryptoCompare shows that since the beginning of October 2018, crypto trading in South Korea has spiked. On certain days in October, the volume has accounted for more than 50 percent of the total crypto market share.
The recent trend is marked by the departure from what was becoming the norm since the beginning of the year. For the better part of the year, KRW crypto trading volume remained stagnant.
All this changed in the middle of the year when it contracted significantly. From June all the way to September, crypto trading volume in South Korea appeared to be shrinking.
A closer look reveals that the shrinkage in KRW crypto trading volume was caused by a series of hacks against crypto exchanges in the country. The month of June alone saw both Bithumb and Coinrail hacked and this led to the theft of millions in crypto coins.
In response to these hacks, the platforms suspended deposits and withdraw. It severely limited trading until the issues were resolved. As a result, it affected the local trading volume given that Bithumb is one of the largest crypto exchanges in the country.
Now some observers believe that the primary reason for the upswing in KRW crypto trading is the current turbulence in the stock market. Investors seem more interested in Bitcoin which appears lately to be more stable than the more traditional assets.
In mid-2018, South Korea recognized cryptocurrency exchanges as legal entities.
It’s a move that has helped legitimize the growing crypto economy in the country as these platforms make up a significant portion of the virtual currency ecosystem.
Now the country continues to be a haven for crypto commerce and blockchain technology. But, financial regulators have remained resolute on the ICO ban.
However, this may change soon as the chairman of the National Policy Committee, Min Byung-doo, has sworn to end the ICO ban.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.
