According to the financial intelligence of South Korea, the capitalization of the cryptocurrency industry in the country amounted to $16.1 billion in the first half of 2022, which is 58% less than at the end of last year.
The South Korean Financial Intelligence Unit (KoFIU) report notes that the decline in performance was recorded in almost every area of the cryptocurrency industry. Thus, the total volume of trading in digital assets decreased by 53%. Now users from South Korea, on average, make transactions with cryptocurrencies for $3.7 billion per day.
In addition, the profit of cryptocurrency companies for the first half of the year decreased by 62%. If last year the figure reached $1.1 billion, now it is $441 million. Among the reasons for this decline, KoFIU names the military operation in Ukraine, an increase in base rates, a drop in liquidity and a significant decrease in confidence in cryptocurrency projects after the collapse of the Terra ecosystem.
At the same time, the number of verified users from South Korea registered on cryptocurrency platforms continues to grow. In six months, the number of verified users increased by 24% and now stands at 6.9 million. At the same time, 73% of the specified number own cryptocurrencies worth less than 1 million won ($700).
Earlier, the regulator of South Korea said that the regulation of the crypto-currency sphere in the country would be adopted only after similar steps were taken by the United States and the European Union.