- The Terraforms issue has had a significant impact on the South Korean cryptocurrency market’s downward trajectory.
- Under the FSC, KoFIU aims to prevent money laundering and improve financial transaction transparency.
The South Korean crypto market capitalization is down about 58% in the first half of 2022. The market has fallen from 32.2 trillion won to 23 trillion (about US$16.1 billion)won in six months from last year. As per the Financial Intelligence Unit (KoFIU).
Downtrend Of Crypto Market
The daily trading volume of the crypto has decreased to 53% from the previous week’s 5.3 trillion won(approx US$3.7 billion).The entire operating profit of South Korea virtual asset service providers fell 62%, from 1.64 trillion won (about US$1.1 billion) to 0.63 trillion won (approximately US$441 million).
The KoFIU cites the war in Ukraine, rising interest rates, a loss in liquidity, and a lack of faith in crypto following the Terra-LUNA incident as reasons influencing the general downturn in the local crypto market. However, the number of registered know-your-customer (KYC) users increased by 24%. Increasing from 5.58 million to 6.9 million in Korea’s total population of 51.78 million.
Approximately 73% of the 6.9 million registered users possess crypto valued at one million Korean won (US$700.57) or less. KoFIU is a national institution under the Financial Services Commission (FSC) that strives to eliminate money laundering, and terrorist funding, and increase transparency in financial transactions.
As the crypto market has been in a slump, the worldwide crypto market value has fallen below $1 trillion, presently standing at $973.22B. In recent days, the first cryptocurrency, Bitcoin, has also been in a downtrend, trading in the red at $18,000.
