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Crypto accounts up, trading down as price surge weakens

Published: 30 Sep. 2025, 20:04 Updated: 01 Oct. 2025, 12:29

The price of the cryptocurrency Bitcoin is shown on a display board at the Bithumb exchange's lounge in Seocho District, southern Seoul, on Aug. 26. [YONHAP]

The number of active cryptocurrency accounts in Korea has exceeded 10 million for the first time, according to a government report released on Tuesday. However, despite this milestone, both trading volume and market capitalization declined due to weakening price momentum.

The Financial Services Commission and Financial Supervisory Service (FSS) published the findings in their latest survey of virtual asset providers, released on Tuesday.

As of June, the number of cryptocurrency accounts capable of trading stood at 10.77 million, up 11 percent, or 1.07 million accounts, from 9.7 million at the end of last year. This is the first time the figure has surpassed 10 million since statistics were first tracked in 2021.

The figure counts active accounts across 25 registered virtual asset service providers — 17 exchanges and eight custodial or wallet providers — and may include duplicates where users hold accounts at multiple platforms.

The largest demographic group was people in their 30s, accounting for 2.99 million, or 28 percent, of users. This was followed by those in their 40s, at 2.92 million or 27 percent, users aged 20 and under at 2.04 million or 19 percent, those in their 50s at 2.02 million or 19 percent and seniors aged 60 and over at 790,000 or 7 percent.

A vast majority — 7.56 million users, or 70 percent — held cryptocurrencies worth less than 500,000 won ($350). Only 10 percent held digital assets valued at over 10 million won, down 2 percentage points from late 2024. High-net-worth holders with over 100 million won in crypto accounted for just 1.7 percent.

As of June this year, there were 1,538 different cryptocurrencies traded in Korea, up 13 percent from 1,357 at the end of last year.

Financial Supervisory Service Gov. Lee Chan-jin speaks duirng a meeting with virtual asset business CEOs at DreamPlus in Gangnam District, southern Seoul, on Sept. 30. [YONHAP]

The cryptocurrency price surge, which peaked immediately following the re-election of U.S. President Donald Trump, slowed in the first half of this year, leading to declines in both trading volume and market capitalization.

The average daily trading volume during the first half of this year was 6.4 trillion won, down 12 percent, or 900 billion won, from the second half of 2024. Total market capitalization stood at 95.1 trillion won — a 14 percent drop from 110.5 trillion won at year-end 2024.

Likewise, total Korean won deposits fell sharply by 42 percent to 6.2 trillion won from 10.7 trillion won. This suggests that while user numbers rose, actual market engagement and capital inflow decreased.

Price volatility increased as well. The average decline from peak prices reached 72 percent in the first half of this year, up from 68 percent at the end of last year — more than double the volatility of Kospi’s 27 percent or Kosdaq’s 20.7 percent.

Financial Supervisory Service Gov. Lee Chan-jin speaks duirng a meeting with virtual asset business CEOs at DreamPlus in Gangnam District, southern Seoul, on Sept. 30. [YONHAP]

Amid declining prices, crypto businesses also saw profits drop. Combined operating profits for local crypto service providers fell 17 percent to 618.5 billion won in the first half of this year, from 744.6 billion won at the end of last year.

At a roundtable meeting with CEOs of 10 major crypto companies, FSS Gov. Lee Chan-jin emphasized user protection and IT security.

“Overly aggressive promotions and risky product launches aimed at short-term profit should not come at the expense of user trust,” Lee said.

Notably, the FSS excluded Bithumb — Korea’s second-largest crypto exchange — from the meeting. Regulators reportedly disapproved of Bithumb’s crypto lending services, which they warned could pose risks to users. Recently, Bithumb CEO Lee Jae-won was also summoned by the Korea Financial Intelligence Unit over concerns related to order book sharing with an Australian exchange.

The FSS's decision to leave Bithumb out of the meeting is widely viewed as a warning amid growing scrutiny.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM NAM-JUN [[email protected]]