The South Korean won has emerged as the top currency for global cryptocurrency trading, surpassing the U.S. dollar. According to a report by the research firm Kaiko, transactions involving the Korean won on centralized cryptocurrency exchanges totaled $456 billion in the first quarter of 2024, slightly exceeding the $445 billion traded in dollars during the same period.

The shift in trading dominance is attributed to fierce competition among South Korean exchanges. Smaller platforms like Bithumb and Korbit have introduced zero-fee trading offers to gain market share from Upbit, which currently controls over 80% of spot trading volumes.

Market insights from Bloomberg indicate that South Korean traders show a preference for smaller, more speculative digital currencies, known as altcoins, over established cryptocurrencies like Bitcoin and Ether, which make up over 80% of the country’s trading activity.

The growing interest in cryptocurrencies has also impacted political discussions in South Korea. In recent parliamentary elections, crypto regulation became a major topic, with candidates proposing policies to delay taxes on digital assets and ease restrictions on U.S. Bitcoin ETF investments to attract younger voters.

Following the $40 billion decline of the TerraUSD stablecoin developed by Do Kwon, South Korean regulatory bodies are planning to implement stricter rules to enhance investor protection, effective from July. Despite regulatory changes, crypto adoption in the country is on the rise. One of the leading exchanges, Crypto.com, has announced plans to launch services for retail traders in South Korea.

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