Instead of Stocks, Bitcoin... Daily Trading Volume of 4 Major Cryptocurrency Exchanges Surpasses KOSPI

On the 5th, domestic cryptocurrency exchanges recorded 15.6 trillion won in transactions... a 33% increase from the previous day
As the stock market falters, investors turn their attention back amid institutional adoption

[Asia Economy Reporter Gong Byung-sun] People are beginning to flock back to the cryptocurrency market. Unlike the sluggish stock market, cryptocurrencies are showing renewed strength and are gradually being incorporated into the institutional framework, leading investors to start recognizing them as reliable investment assets.

According to cryptocurrency market tracking site CoinGecko on the 6th, the total trading volume on the four major domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit) reached 15.6739 trillion KRW the previous day. On the 4th, the trading volume on the four major domestic exchanges was about 11.7708 trillion KRW, but it increased by 33% in just one day. On the previous day, about 13.6822 trillion KRW was traded on Upbit alone, followed by Bithumb with 1.5967 trillion KRW, Coinone with 373.7 billion KRW, and Korbit with 23.1 billion KRW.

This level surpasses the KOSPI trading volume of 15.3155 trillion KRW as of the 5th. The KOSPI fell 1.89% the previous day due to a combination of factors including the delay in the U.S. Biden administration's infrastructure investment bill vote, yet trading was active. Although there was a significant amount of stop-loss selling, there was also considerable low-price buying. In fact, the KOSPI trading volume exceeded 15 trillion KRW again on the 5th, marking the first time in 11 trading days since the 14th.

Despite this, as Bitcoin began to rise, investors' attention shifted more toward the cryptocurrency market. Bitcoin surpassed the 60 million KRW mark again after about a month by reaching 60.33 million KRW on the 4th, rising approximately 29% in October alone. Not only Bitcoin but altcoins such as Ethereum also showed gains exceeding 10%. This contrasts with the KOSPI index, which fell 3.48% during the same period.

Increasing Institutional Inclusion... Investors Turning Attention to Cryptocurrency Market

[Image source=Reuters Yonhap News]

The reason Bitcoin started rising again is due to expectations that it could be incorporated into the institutional framework. A representative example is the Bitcoin Exchange-Traded Fund (ETF). On the 29th of last month (local time), Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), stated at the Future of North American Asset Management Conference, "Bitcoin ETFs invest in futures contracts, not Bitcoin itself," and added, "I expect the SEC's relevant department to review Bitcoin ETF application documents." The cryptocurrency industry expects that if Bitcoin ETFs are launched on the U.S. stock market, the size of the cryptocurrency market will expand further.

Domestically, movements to protect investors such as institutional inclusion are also emerging. An environment where investors can trust and invest in cryptocurrencies is being created more than before. Upbit announced that it will officially implement the Know Your Customer (KYC) system starting on the 6th. KYC is a system under the Act on Reporting and Using Specified Financial Transaction Information that requires cryptocurrency exchanges to verify customers' identities and information to prevent money laundering. Investors wishing to trade on Upbit must go through a verification process using their resident registration card or driver's license and a bank or securities account under their name. Existing users who do not complete KYC verification by the 13th will have their trading and deposit/withdrawal functions suspended.

The number of cryptocurrency exchanges whose virtual asset service provider registrations have been approved is gradually increasing. On the 5th, the Financial Intelligence Unit (FIU) under the Financial Services Commission announced that it had approved Korbit's virtual asset service provider registration. Although it was initially expected to take about three months from application to approval, it was expedited by two months. An industry official explained, "This means that domestic cryptocurrency exchanges meet the standards required by the institutional framework," adding, "As the cryptocurrency market becomes included in the institutional framework, an environment where investors can invest with peace of mind will be established."

This content was produced with the assistance of AI translation services.