The Era of 15 Million Domestic Coin Investors... Trading Volume Reaches Stock Market Levels

Last month, the number of virtual asset investors in South Korea surged explosively. It appears that a large influx of new investors was driven by expectations surrounding the victory of Donald Trump, who proclaimed himself the 'Cryptocurrency President' in the U.S. presidential election.

According to data submitted by the Bank of Korea to Im Kwang-hyun, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, the number of domestic virtual asset investors stood at 15.59 million as of the end of November. This represents an increase of 610,000 compared to the end of October, before the U.S. presidential election.

This figure counts investors holding accounts at the five major domestic exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), and duplicates are included if one person holds accounts at multiple exchanges. This is the first time the Bank of Korea has released statistical data related to virtual assets.

The number of domestic virtual asset investors showed a steady monthly increase of around 100,000, with 14.74 million at the end of July, 14.82 million at the end of August, 14.88 million at the end of September, and 14.98 million at the end of October. However, the growth rate accelerated in November.

As of the end of November, the total value of virtual assets held by domestic investors, based on market valuation, reached 102.6 trillion KRW. The total holdings had remained at similar levels previously: 58.6 trillion KRW at the end of July, 50.6 trillion KRW at the end of August, 54.7 trillion KRW at the end of September, and 58 trillion KRW at the end of October, before surging at the end of November.

The amount of deposits, which are funds waiting to be invested, was recorded at 8.8 trillion KRW at the end of November. This is a significant increase from 4.9 trillion KRW at the end of July, 4.5 trillion KRW at the end of August, 4.4 trillion KRW at the end of September, and 4.7 trillion KRW at the end of October.

The trading volume has grown to rival that of the domestic stock market. The average daily trading value of domestic virtual asset exchanges in November reached 14.9 trillion KRW. This is roughly equivalent to the combined trading values of the KOSPI market (9.9214 trillion KRW) and the KOSDAQ market (6.9703 trillion KRW) in the same month.

Assemblyman Im said, "The scale of virtual asset trading is rapidly increasing to a level comparable to the stock market," adding, "Comprehensive preparations are necessary at the government-wide level to enhance the stability of the virtual asset market and to establish a sound market trading environment that protects users' rights and interests."