Crypto ownership in South Korea hits record highs, fueled by U.S. political shifts and evolving domestic regulation.
South Koreans now hold a record $73.4 billion worth of cryptoassets on domestic exchanges, according to the Bank of Korea (BOK). The surge follows a sharp uptick in buying activity linked to Donald Trump’s return to the U.S. presidency, per the local news outlet Busan Ilbo.
The BOK’s data, released in its latest payment and settlement report, shows that in December 2024, crypto held in domestic wallets crossed the 100 trillion won threshold ($70.5 billion) — the highest monthly total since the central bank began tracking crypto metrics.
Trump’s Pro-Crypto Stance Spurs South Korean Demand
Analysts attribute the rapid growth in South Korea’s crypto market to political developments in the U.S., specifically the election of President Donald Trump in November 2024.
At the end of October, just weeks before the election, South Korean crypto holdings stood at 58 trillion won ($41 billion). By December, that figure had more than doubled to 100 trillion won, a gain of over $29 billion in just two months.
Busan Ilbo cited Trump’s “crypto-positive campaign pledges” as a major driver of this investor enthusiasm.
Trading Volume Skyrockets to $12.1B Per Day
The BOK also reported a substantial spike in trading activity following the U.S. election. In the final weeks of 2024, average daily trading volume on South Korean exchanges rose to 17.2 trillion won ($12.1 billion) — more than five times October’s daily average.
This dramatic increase highlights the extent to which global political sentiment can impact local crypto behavior, particularly in countries like South Korea with high digital asset adoption rates.
Domestic Reforms Also Played a Role, Says BOK
While Trump’s win sparked global excitement, the BOK noted that South Korea’s own regulatory developments were also instrumental in driving crypto growth.
The Virtual Asset User Protection Act, which came into force in July 2024, introduced legal safeguards against market manipulation and unfair trading. The act helped increase retail investor confidence and laid groundwork for future crypto policy.
A second round of legislative reforms was scheduled for November, but progress was stalled following political turmoil caused by President Yoon Suk-yeol’s attempt to declare martial law on December 3.
Despite the setback, lawmakers have pledged to revisit crypto reform following the June 2025 presidential election.
South Korean Crypto Firms Still Facing Restrictions
Despite the massive increase in user-held crypto, South Korean blockchain firms remain limited in what they can do. They are still prohibited from launching their own tokens or holding digital assets like Bitcoin on company balance sheets.
Industry leaders have voiced frustration, claiming South Korea is falling behind global rivals like the U.S. and Japan. However, regulators have hinted that these restrictions may be lifted in the second half of 2025.
Stablecoin Rules Incoming, Says Central Bank
The BOK’s report concluded with a detailed discussion of stablecoins, suggesting that regulations specific to stable-value digital assets will be introduced soon.
The bank expressed concern that widespread stablecoin use could undermine monetary policy and disrupt payment systems, stating:
“Stablecoins, if circulated widely, could challenge the role of central banks and legal tender. A tailored regulatory framework is needed.”
The BOK promised to actively engage with lawmakers and contribute its insights to the Virtual Asset Committee, a body responsible for shaping South Korea’s crypto policy.
The bank said it would offer guidance “from a central bank perspective” to ensure financial stability is preserved as new digital assets enter the payments ecosystem.
