Koreans have adopted cryptocurrency for several reasons, and its popularity is still growing to this day. The crypto scene in Korea is one that is important to learn about, including how Koreans use crypto, which platforms are popular, and the factors affecting the Korean market. It’s also worth knowing potential crypto pitfalls and reviewing a brief history of digital currency and its regulations in the country.
Crypto Usage in Korea
There are a number of ways that Koreans like to use crypto. Let’s explore the top three below.
- Gambling: Cryptocurrency can be used for online entertainment, such as online gambling, which is popular in Korea. With online gambling platforms, savvy bettors in Korea can enjoy playing traditional casino games like blackjack, poker, or slot machines or even place bets on a sports event or specific team player (source: https://www.luckyblock.com/ko).
- Online Shopping: Online shopping is now possible for Koreans using digital currencies. The use of these currencies is on the rise for internet buys, with more sellers embracing this payment choice in the nation.
- Investments: Investors in Korea can also choose to have crypto investments by buying and holding cryptos until their value increases. Users can also decide to trade crypto once the value increases to get a larger return.
Popular Cryptocurrency Exchange Platforms In Korea
Korea has a variety of crypto exchange platforms available. Let’s review a few of the favorites in the region.
Bithumb
Established in 2013 and has become one of Korea's most popular and largest cryptocurrency exchanges, as Bitcoin, Ripple, and Ethereum can be exchanged on this platform.
The platform is user-friendly and has various features. These features include advanced trading tools, real-time market data, and secure storage for digital assets. It has also implemented regulatory requirements and complies with KYC procedures, preventing fraudulent activities.
Upbit
This platform was launched in 2017 and has become popular among Korean cryptocurrency traders. Danamu Inc., one of Korea's largest internet companies, operates the platform. It also uses advanced encryption techniques to protect investors' assets and uses cold wallets and offline storage for cryptocurrencies that cannot be hacked into. For any concerns or inquiries, there is also a customer support service available to users.
On the Upbit platform, users can trade with Bitcoin, Ethereum, Ripple, and even altcoins. Various order types are available, such as limit, stop-limit, and market orders. The platform also complies with KYC procedures to prevent fraudulent activities on its platforms. There are mobile versions of the Upbit platform that can be used on both Android and iOS.
Coinone
Founded in 2014, Coinone provides a marketplace for users to buy, sell, and trade various types of digital money. Robust security features assure user safety. It stands out for its unique options such as margin trading and a convenient mobile app.
Factors Affecting Korea's Cryptocurrency Market
Korea has easily adopted cryptocurrency as the country has many tech-savvy individuals. These people are ready to learn about crypto's potential benefits. Other factors influencing Korea's cryptocurrency market include social media and peer-to-peer influence by spreading the word about digital coins and their use.
In addition, the Korean government has shown great support for adopting cryptocurrency as it recognizes its potential for innovation and economic growth.
Cryptocurrency Investments Have Potential Risks in Korea
The value of cryptocurrency is known to be volatile and can fluctuate. Investors must be aware of potential losses as crypto values often move up or down quickly.
Furthermore, Korea's regulatory environment is still evolving, and government policies and regulations can impact both investors and the market. It is important to stay current about the regulatory developments surrounding cryptocurrencies.
Lack of regulation and low liquidity can also manipulate the cryptocurrency market. To further protect your investment, ensure that you have considered the following measures:
- Use secure wallets and regularly update the wallet software. For hardware wallets, consider using Trezor or Ledger.
- Implement a two-factor authentication for an extra layer of security for your cryptocurrency accounts.
- Always conduct thorough research about the cryptocurrency you want to invest in. Having a diverse investment portfolio means spreading your investment across various cryptocurrencies to help avoid risk.
- Always stay educated and informed on the latest developments about the trends and markets so you can make wise crypto decisions.
The Brief History of Crypto and Regulations in Korea
Regulations for cryptocurrencies were put into action by the Korean government. This vigilance started in 2017 when tighter rules were introduced. The central aim was to wipe out money-laundering and other unlawful conduct linked to digital currencies.
Korea's rules on digital currency underscore the importance of adhering to laws that prevent money laundering. To verify identities, people making transactions with virtual money on platforms must use their actual names. This is because Korea does not allow trading accounts to stay anonymous.
Last year, Korea unleashed the Crypto Act. To guarantee both clear operations and safety on the digital money trade platforms, they're applying AML and KYC rules. In 2017, they also put a stop to ICOs while cooking up tighter rules for the trade platforms.