South Korea’s cryptocurrency market is booming as investors shift 27 trillion won ($19.2 billion) from bank deposits into riskier assets, including cryptocurrencies and stocks. Market experts say the surge in crypto investments is linked to changes in the global political landscape, especially after Trump’s return.
Data from the Financial Supervisory Service, released by opposition lawmaker Ahn Do-geol, shows a clear generational shift. The number of cryptocurrency accounts held by South Koreans aged 60 and older has increased by 30.4% since the end of 2021, indicating a growing trend among retirees.
Similarly, investors in their 50s saw a 22.5% increase in the number of accounts. In contrast, younger South Koreans are more cautious: those in their 20s saw a 6.4% decrease in accounts, while those in their 30s saw a slight increase of 8.3%.
South Korea Delays Crypto Taxes for Two Years
The demographic changes reflect an increasingly positive view of cryptocurrencies as a potential investment channel, especially among older generations. This optimism was further reinforced by the decision of the Democratic Party of Korea to postpone the imposition of a cryptocurrency tax for two years. Many in the crypto community see this as a positive factor driving the market’s growth.
Arthur Hayes, co-founder of the BitMEX exchange, expressed confidence that the bull market will continue as long as South Korea continues to delay the imposition of capital gains tax on cryptocurrencies for the next two years.
The increased risk appetite combined with the recent tax deferral policy could create major changes in South Korea’s financial priorities and the country’s role on the global crypto map.
