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- The south Korean crypto market crashed after Luna and Terra’s money laundering case.
- The margin profit of crypto traders decreased in the South Korean market.
As per data sources from the Financial Intelligence Unit(KoFIU), The crypto market of South Korea was around 23 trillion Won which is around 16.1 billion U.S dollars, in the first quarter of 2022, and the market faced a severe downtrend from 55.2 trillion Won which is around 38,702,756,880.00 US Dollars in last six month in the second quarter of 2021.
The 24-hour trading volume of the crypto market in South Korea dropped by around 53% compared to the last six months to an average of 5.3 trillion Won, which is around 3.7 billion U.S dollars.
The overall operating profit of digital assets service providers in South Korea decreased by around 62% ranging from 1.64 trillion (about 1.1 billion U.S dollars) to 0.63 trillion Won(about 441 million U.S Dollars).
The KoFIU has mirrored a war between Russia and Ukraine; the rising interest rates and downtrends in liquidity are also important factors in the massive losses faced by the South Korean crypto market. However, Terra and Luna’s market crash is also termed as the major factor in the declining crypto market in South Korea.
Moreover, a slight increase of 24% is seen in the KYC(Know Your Customer) from 5.58 million to 6.9 million, and the total population of South Korea is around 51.78 million.
Among 6.9 million registered customers, around 73% of the customers hold digital and virtual assets valued at one million Korean won(Around 700.57 U.S dollars) or less.
KoFIU is a special branch of the Financial Service Commission(FSC). It is a national agency that works to maintain transparency and trace down money laundering, terror funding, and financial transaction for illegal activities.
On 26th September 2022, TheCoinRepublic reported that Interpol had issued a Red Notice against Do Kwon, the co-founder of Terraform labs, who is facing charges related to the laundering of $60billion of the cryptocurrency he created.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
