South Korea crypto users hit 16M amid saturation concerns

South Korea’s cryptocurrency exchange user base has surpassed 16 million, representing over 30% of its population, according to data from the country’s top five exchanges.

Industry officials speculate this figure could reach 20 million by year-end, though some analysts warn the market may have reached a saturation point.

The data, submitted to Representative Cha Gyu-geun of the Rebuilding Korea Party, reflects accounts from platforms like Upbit, Bithumb, and Coinone.

Individuals with multiple accounts were counted once, ensuring accuracy.

Following former U.S. President Donald Trump’s election win last November, crypto user numbers surged by over 600,000 to 15.6 million.

Collectively, these investors held 102.6 trillion South Korean won ($70.3 billion) in crypto assets as of December 2024.

“Some believe the crypto market has reached a saturation point, but there is still an endless possibility for growth compared with the matured stock market,” noted an unnamed industry official.

For context, South Korea’s stock market had 14.1 million individual investors as of December 2024, per the Korea Securities Depository.

Crypto’s broader appeal is evident in its adoption among public officials: 20% of surveyed government employees disclosed holding 14.4 billion won ($9.8 million) in crypto, with Seoul City Councilor Kim Hye-young reporting the highest stake at 1.76 billion won ($1.2 million).

Regulatory efforts continue, with the Financial Intelligence Unit recently blocking 17 unregistered platforms from the Google Play store and flagging 22 non-compliant platforms.

While growth projections remain optimistic, analysts caution that distinguishing between speculative and stable assets will be critical to sustaining momentum.