South Korea loves currency speculation! Bloomberg: South Korean won surpasses U.S. dollar to become most popular cryptocurrency versus fiat currency

According to Bloomberg, the South Korean won has now replaced the U.S. dollar as the most frequently exchanged fiat currency in the cryptocurrency market due to a surge in speculative demand for risky tokens in South Korea.

The report quoted data from cryptocurrency research company Kaiko as pointing out that in the first quarter of this year alone, the trading volume of Korean won on centralized exchanges (CEX) reached 456 billion U.S. dollars, while the trading volume of U.S. dollars was 4,450 billion U.S. dollars. One hundred million U.S. dollars.

"Bloomberg" mentioned that the reason why the transaction volume denominated in South Korean won has increased significantly is that Korean exchanges are engaged in a "handling fee war". Bithum and Korbit recently launched "zero handling fee" trading promotions in an attempt to attract traders from large exchanges such as Upbit, which accounts for more than 80% of South Korea’s cryptocurrency spot trading volume.

According to reports, Korean investors prefer altcoins with smaller market capitalization and higher volatility, accounting for more than 80% of all cryptocurrency trading activities in South Korea.

Since a series of events such as the LUNA collapse and FTX bankruptcy broke out in 2022, the Korean government has actively regulated the cryptocurrency industry and strived to protect the rights and interests of investors.

The Korean Financial Supervisory Commission (FSC) issued a legislative notice in December last year on the formulation of the "Execution Regulations of the Virtual Asset User Protection Act" and the "Virtual Asset Industry Supervision Regulations", introducing a protection mechanism for user assets and stipulating that operators The obligation to safely store and manage user deposits, and also establish penalties for illegal activities such as "trading using non-public information", "market manipulation" and "unfair trading".

The announcement period for the above-mentioned implementation regulations has expired in January this year, and it is expected to come into effect in July this year after review and other procedures.

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