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FIU and FSS fact-finding survey…Users up 0.4%, Won deposits down 35%
The size and profitability of the domestic virtual asset market have significantly shrunk this year. Market capitalization (-33%), trading volume (-44%), and operating profit/loss (-78%) all sharply decreased in the first half.
According to the first-half fact-finding survey of virtual asset service providers announced by the Financial Intelligence Unit (FIU) and the Financial Supervisory Service (FSS) on the 1st, the total estimated value of virtual assets in the domestic market was 58.9 trillion won as of the end of June, a 33% decrease from the end of last year (87.2 trillion won).
During the same period, the global virtual asset market cap also decreased by 28% to 3,161 trillion won based on CoinMarketCap.
The total trading volume of virtual assets in the domestic market in the first half was 555 trillion won, a 44% decrease from the second half of last year (1,001 trillion won). The average daily trading volume decreased from 5.4 trillion won to 3.1 trillion won.
This was in line with Bitcoin's price trends.
Authorities analyzed that Bitcoin's price sharply declined due to caution regarding major countries' monetary policy paths and deteriorating overall market supply and demand conditions. In particular, the expansion of inflationary pressure due to the war led to a retreat in interest rate cut expectations and strengthened risk aversion, thus expanding the downward trend.
Won deposits also decreased by 35% to 5.2 trillion won from 8.1 trillion won at the end of last year.
As the market structure remained centered on the Won market, the total estimated value of the Coin market accounted for only 0.6% of the total.
The monthly transaction turnover rate, newly calculated from this survey, also showed a clear gap in transaction activity between markets, with the Won market at 100-201% and the Coin market at 2-9%.
The number of users on domestic exchanges slightly increased.
The number of tradable user accounts increased by 0.4% to 11.175 million.
The majority of users (77.2%) hold less than 1 million won in virtual assets.
The proportion of accounts with 100 million won or more decreased by 0.5 percentage points (p) to 1% (110,000 accounts).
The most frequent age group of users was found to be those in their 40s.
The proportion of users was in the order of 40s (26.9%), 30s (26.7%), 50s (20%), 20s or younger (17%), and 60s or older (9%).
In the second half of last year, the 30s accounted for the largest proportion (26.8%), followed by the 40s (26.7%).
Exchange revenue decreased by 41% to 576.8 billion won, and operating profit/loss decreased by 78% to 81.6 billion won.
The number of tradable user accounts for wallet and custody providers increased by 2% to 792, compared to 779 at the end of last year.
The total number of virtual assets circulated domestically (excluding duplicates) decreased by 5% to 673.
Among these, the number of solely listed virtual assets decreased by 21% to 234.
The total domestic estimated value of solely listed virtual assets is 600 billion won, which is only 1% of the total domestic market. However, authorities pointed out that 40% (93 items) of these are small-scale virtual assets with an estimated value of less than 100 million won, requiring caution due to lack of liquidity and sharp price fluctuations.
New trade support (listings) decreased by 46% to 135 cases (including duplicates), while trade suspensions (delistings) increased by 64% to 108 cases. Designations of cautionary items increased by 46% to 139 cases.
The maximum drawdown (MDD), which indicates price volatility, decreased by 4 percentage points to 69%.
The amount of virtual assets transferred externally decreased by 41% to 62.8 trillion won.
The amount subject to Travel Rule, applied to transfers between exchanges, decreased by 39%, and transfers to overseas operators or personal wallets (whitelist) decreased by 43%.
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