South Korea’s Cryptocurrency Trading Reaches Record High of $34 Billion

In the wake of sudden martial law imposition, cryptocurrency trading volume soared to a new pinnacle of $34.2 billion in a single day from South Korea. Such intense trading activity, majorly propelled by Upbit, a leading South Korean crypto exchange, underscored the escalating integration of digital currencies in the nation’s financial infrastructure amid political unrest.

CoinMarketCap data reports Upbit’s $27.25 billion contribution to the overall volume, with Bithumb, Coinone, Korbit, and Gopax also recording significant trades.

Compared to the previous day’s $18 billion, the trading volume nearly doubled, outstripping the turnover of South Korea’s stock market. Local crypto news outlet Digital Asset confirmed this volume as the year’s highest for a single day.

Market Shaken by Martial Law Declaration in South Korea

Following the abrupt martial law declaration by President Yoon, reportedly in response to threats from ‘anti-state’ factions linked to the left-wing opposition, started investor panic in the crypto markets.

Prices for cryptocurrencies sharply declined, leading traders to rapidly sell off their holdings. At its nadir, Bitcoin fell to 88 million won ($62,182) on Upbit, with similar downturns for other digital assets.

These surges in trading volumes led to outages as exchanges struggled to handle the increased traffic.

Lawmakers swiftly convened an emergency session to reverse the martial law declaration on early Wednesday, with President Yoon retracting the order shortly thereafter. Yet, the political repercussions persist.

Amidst these events, opposition party legislators are pursuing charges of treason against President Yoon and his ministers, with impeachment discussions gaining traction.

Concise timeline of the ongoing crisis in South Korea:

1) President Yoon faced potential impeachment action from the opposition.

2) He responded by declaring martial law, halting political activities.

3) The military secured the parliament, barring entry to MPs… link

— Source (@TwitterHandle) Date

On prediction markets like Polymarket, President Yoon’s political fate has become a subject for speculation, with the likelihood of an early departure peaking at 78% before leveling to 47%. His term is scheduled to end in May 2027.

Cryptocurrency: A Financial Haven Amidst Chaos

A recent survey highlighted the trend of South Koreans, especially those between 20-39 years old, turning to cryptocurrency and stocks as retirement saving options, with widespread mistrust in the national pension system.

Reports from Yonhap News indicate that around 7% of political candidates in South Korea have disclosed crypto holdings.

The government, amidst this crypto surge, is tightening regulations around exchange token listings and is introducing measures to prevent token theft.

The planned 20% tax on cryptocurrency gains is deferred to 2025 following delays due to legislative negotiations and public pushback.

Despite the tumultuous circumstances, the South Korean cryptocurrency market continues to demonstrate its resilience and volatility. As the nation navigates through ongoing political and financial shifts, the significance of cryptocurrencies as both a haven and an investment vehicle amplifies, preparing for an evolving regulatory and investment climate.