In South Korea, the number of crypto investors under the age of 30 has tripled over the past two years. However, regulators are concerned that spontaneous investment could lead the younger generation to bankruptcy.
Despite the difficulties in the industry, the cryptocurrency boom in South Korea continues to attract young investors into its environment. However, the country’s regulators are concerned about a significant increase in the level of credit debt of crypto investors under the age of 30 – over the past five years, their number has increased by 30%.
The Financial Services Commission of Korea (FSC) believes that the increase in debt was the result of the younger generation’s rush investment in cryptocurrency stocks and virtual assets, amid low interest rates on consumer loans before and after the pandemic.
How informs According to the Upbit exchange, as of October 2020, about 1.7 million users applied to the site’s services, and by the end of 2021 their number exceeded 5 million. Over the same period, more than 8 million clients under the age of 30 registered on the Bithumb exchange.
The South Korean Financial Supervisory Service (FSS) cited data that at the beginning of September 2022, about 5 million young investors announced the ownership of assets of foreign cryptocurrency companies – this is six times more than in 2019, when their number was 800,000.
A report by the Korea Institute for Financial Research (KIF) found that by the end of April 2022, there were almost 4.5 million debtors under the age of 30 in the country’s financial sector, with a total debt of over $500 million.
Clarifying the reason for the irrational behavior of young crypto investors, KIF Senior Fellow Kim Jabonn said that “investors in their 20s and 30s do not have sufficient experience and knowledge in the field of finance, therefore they tend to succumb to negative influence and invest in dubious projects” .
In early September, KIF employees analyzed the historical data on the development of cryptocurrencies in the country and concluded that their impact on the traditional economy is approaching a critical level.
Source: Bits
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