S Korea’s Crypto Market Basking in Millennial Favor
Millennials have emerged as the primary driving force of South Korea's cryptocurrency market.
South Korea’s Millennials are driving its cryptocurrency industry, as a recent survey by the Korea Financial Investors Protection Foundation has found. Those in their 20s and their 30s are the most active investors in digital currencies, official news agency Yonhap reports.
Conducted in December 2017, the survey covered 2,530 South Koreans aged between 25 and 64, with 22.7% of 20-somethings reporting purchases of cryptocurrency. Those in their 30s were the second largest group of crypto investors: 19.3% of them said they had invested in the nascent asset class.
People in their 40s came third with 12%, while 10.5% and 8.2% were the respective proportions for those their 60s and their 50s. Across all age groups, the study found that 13.9% of South Koreans had purchased digital currencies.
Probably because of their greater financial stability, people in their 60s had invested the largest amount in cryptocurrencies, with an average of $6,161 (6.58 million won) in their digital currency portfolio. The 50s group had average individual investments of $5,875 (6.28 million won) and those in their 30s had invested $3,490 (3.73 million won). The youngest and also most active buyers had average holdings of $2,741.
Bitcoin and Ethereum emerged as the favorite digital currencies among South Koreans looking for investment opportunities that offer quick and high returns.
New rules excite South Korea's crypto sector
Last month, the cryptocurrency space cheered South Korea’s announcement that the government would pursue a cooperation route with industry players instead of imposing stringent rules. This has sparked hopes that the market will return to normalcy.
Korea Blockchain Association’s Kim Haw-joon was quoted as saying:
"Though the government and the industry have not yet reached a full agreement, the fact that the regulator himself made clear the government's stance on cooperation is a positive sign for the markets.”
Earlier, local media cited an unnamed government official as saying that the country was looking to implement a new digital currency exchange approval system modeled after the BitLicense of the New York State Department of Financial Services (NYDFS).