The crypto market and blockchain sector of South Korea, the third-largest digital asset exchange market in the world behind the United States and Japan, have some of the most robust systems and infrastructure in place to protect investors and facilitate the growing demand for cryptocurrencies.
The strong infrastructure of the country’s cryptocurrency market is primarily attributable to the involvement of major multi-billion dollar conglomerates and commercial banks that have assisted the growth of local crypto-related businesses over the past two years.
In late 2017, as the valuation of the crypto market achieved an all-time high of nearly $900 billion, interest toward cryptocurrencies peaked, and every national television network, publication, company and investor in the local market were discussing the viability of cryptocurrencies as an investment.
As Tony Lyu, the CEO of Korbit, the fifth-largest cryptocurrency exchange in South Korea, stated in an interview, the local financial market is often described as a copper pan — due to its tendency to overheat and cool down rapidly.
“Word just spreads really fast in Korea. Once people are invested, they want everyone else to join the party. There’s been this huge, almost a community movement around this.”
To address the surge in demand for crypto, major conglomerates started to get heavily involved in the local market since December of last year, which continued throughout 2018.