Market cap of virtual assets in S. Korea grows 27 pct in H1: data

SEOUL, Oct. 31 (Yonhap) -- The value of South Korea's virtual asset market increased 27 percent in the first half from six months earlier in line with the growth of the global cryptocurrency market, data showed Thursday.

The market capitalization of the virtual asset market had reached 55.3 trillion won (US$40.1 billion) as of end-June, up from 43.6 trillion won tallied six months earlier, according to the data from the Financial Services Commission (FSC).

The value of daily average transactions jumped 67 percent to 6 trillion won over the cited period, while the operating profit of market operators soared 106 percent to 590 billion won in the January-June period.

The number of market users also advanced 21 percent to 7.78 million, and the total value of Korean won deposits made by traders was up 3 percent to 5 trillion won.

The FSC attributed the growth of the country's virtual asset market to a hike in bitcoin prices sparked by the release of bitcoin exchange-traded funds in the U.S. market and halving of the cryptocurrency in April.

The FSC also said the market gained momentum on expectations that both of the U.S. presidential candidates, Donald Trump and Kamala Harris, will be open to supporting the industry.

There were 14 virtual asset market operators in South Korea as of end-June, trading a total of 554 types of cryptocurrency, including bitcoin, ethereum, XRP and Dogecoin, according to the FSC.

As of last year, there had been 600 types of crypto in the South Korean market.

The max draw down rate of cryptocurrencies, which shows the price volatility, had come to 70 percent in the first half, up 8 percentage points from six months ago.

nyway@yna.co.kr
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