The South Korean Financial Services Commission (FSC) reported on the total volume of transactions on cryptocurrency exchanges licensed in the country for the year.
The recently published FSC report summed up the results of 2021 for the country’s crypto market. According to the report, despite strict regulatory oversight, the Korean market has reached new records.
FSC analyzed the data of all 24 licensed crypto exchanges and found that their daily transactions reached $9.4 billion. The cumulative operating profit for the last year was $2.8 billion. At the same time, nine companies reported net losses.
Fiat Korean won dominated the market, accounting for about 95% of all cryptocurrency transactions on the largest platforms Bithumb, Upbit, Korbit and Coinone. Analysts explain that the dominance of the national currency is due to new rules regarding cryptocurrencies released in 2021. The regulations require crypto exchanges to open bank accounts of traders in real names with a certified bank. The rules, according to The Korea Herald, forced nearly 200 small and medium-sized businesses to close as banks refused to cooperate with them.
In total, 15 million users of cryptocurrency exchanges are registered in South Korea. 5.5 million of them participated in the auction at least once a year. At the same time, more than a million users own digital currencies worth more than $850,000.
Recall that in December last year, the South Korean tax service announced that it would tax donated and inherited cryptocurrencies from January 1, 2022.
Source: Bits
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