South Korea Sees Crypto Rise After Trump Wins US Election
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Crypto holders in South Korea reportedly increased in November after Donald Trump became the President of the United States.
On Dec. 25, the number of people using crypto in the country rose by 610,000. Representative Lim Kwang-Hyun from the Democratic Party of Korea shared numbers showing that, by the end of November, 15.6 million people were investing in digital assets.
South Korea’s Crypto Holders Represent Over 30% Of The 51.7 Million Population
South Korea has a total population of 51.7 million, meaning the 15.6 million crypto holders make up more than 30% of the people. Yonhap shared that this count comes from five popular Korean exchanges, including Bithumb, Upbit, Korbit, Coinone, and Gopax.
On July 19, the Virtual Asset User Protection Act, introduced by the Financial Services Commission (FSC), became effective. With the new rules, crypto service providers must make sure users’ crypto assets are kept safe.
Yonhap explained that the information was gathered and shared after the country set up new rules for crypto exchanges. It also noted that this was the first time that numbers about crypto had been officially shared.
In addition to the number of users, the report also revealed that South Koreans hold around 102.6 trillion Korean won ($70.3 billion) in digital assets. The news outlet added that the country’s crypto trading activity is already starting to compete with the local stock market.
Yonhap suggested that the rise in crypto users might be linked to the outcome of the November US elections. On Nov. 5, Trump became the US President. Many people think that Trump’s win will help change an “anti-Bitcoin” feeling in the US and bring better policies for crypto.
South Korean Crypto Users Hope For Better Regulations Following Trump’s Win
This idea has also spread to the crypto world in South Korea. Yonhap noted that the rise in crypto users there might be driven by hopes for better rules for the crypto world after Trump’s victory.
Kim Nam-kuk, a member of South Korea’s National Assembly, might face six months in jail for not informing the government about all his crypto holdings. Per a Dec. 18 report from South Korean media outlet Dong-A Ilbo, lawyers handling Kim’s case asked for a six-month jail sentence. Kim is now facing a trial in Seoul.
It is said that Kim shared his total wealth as 1.2 billion Korean won (about $834,356) in 2021, even though he owned 9.9 billion in digital assets. He also hid 990 million won worth of crypto in 2022.
Prosecutors reportedly said Kim “blocked the National Assembly Ethics Committee’s check of lawmakers’ wealth in a dishonest way” by not showing all his crypto holdings. Keeping such assets can lead to possible problems for government officials.
Kim left the Democratic Party in 2023 after reports came out saying that he sold millions worth of crypto before South Korea started following the Financial Action Task Force’s Travel Rule. Kim reportedly said he moved the money to another exchange and that he didn’t have to report these holdings to the government.
