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IThe rising trading volume follows the country’s Financial Services Commission’s requirement that cryptocurrency trading platforms register as digital asset service providers by September 24.
Crypto users aged 30-39 in South Korea are said to be the group with the greatest deposits on the country’s major exchanges.
According to a Sunday report from the Yonhap News Agency, South Korean residents in their 30s deposited roughly 2.2 trillion KRW — $1.9 billion at the time of publication — to crypto exchanges Upbit, Bithumb, Coinone, and Korbit by the end of the second quarter of 2021. Teenagers in the country represented the group with the fewest deposits at $3.4 million, but this still was a more than 400% increase compared to the $824,000 those under 20 years old deposited in Q1 2021.
“All age groups are investing in virtual assets,” said Doo-Hyun Yoon, a member of the National Assembly’s Political Affairs Committee. “The government needs to be more careful in setting up policy on virtual assets, including paying special attention to the position of young investors.”
Upbit users accounted for the majority of the deposits with 3.5 billion KRW, followed by Bithumb and Coinone.Upbit reportedly became one of the first South Korean crypto exchanges to register with the country’s regulators earlier this month — the Financial Services Commission announced earlier this year that local crypto trading platforms would be required to register as digital asset service providers by September 24.
While big cryptocurrency exchanges attempt to fulfil this deadline, smaller exchanges are allegedly considering suing the South Korean government for its apparent failure to accept responsibility for undue regulatory pressure. The new regulations empower authorities to punish noncompliant exchanges up to 50 million KRW or imprison their operators for up to five years.