South Korea Crypto Investors Top 11 Million as New User Growth Slows

The number of cryptocurrency investors in South Korea has surpassed 11 million, but growth in new users has slowed sharply.

Digital Times reported on May 10, citing the Financial Services Commission's survey of virtual-asset service providers, that the number of users on domestic won-denominated exchanges who completed know-your-customer verification nearly doubled to 11.13 million at the end of last year from 5.58 million at the end of 2021.

The pace of growth has eased significantly in recent periods. The growth rate for tradable users was 21% in the first half of 2024 and 25% in the second half, but dropped to 3% in the second half of last year.

Separately, filings on the Financial Supervisory Service's electronic disclosure system showed the combined number of employees at major domestic exchanges Upbit and Bithumb rose to 1,334 at the end of last year from 682 in 2021. Upbit's headcount increased to 696 from 370 during that period, while Bithumb's rose to 638 from 312. The staffing expansion reflects market growth driven by an increase in domestic crypto investors and a broader lineup of listed tokens.

Industry officials say the crypto market's relatively weak performance compared with domestic and overseas stock markets and commodities has reduced the inflow of new investors. They also point to the structure of South Korean exchanges, which remains focused on spot trading, as a constraint on further growth.