S Korea: Some 100,000 investors held over 100m in crypto by end-2021

S Korea: Some 100,000 investors held over 100m in crypto by end-2021

Nearly 100,000 retail investors in South Korea were holding over ₩100 million ($78,902) each in deposits in local cryptocurrency exchanges as of December-end last year, according to data from Financial Services Commission.

The government data showed that by the end of 2021, there were a total of 5.58 million investors registered on crypto exchanges in South Korea.

The platforms also included the locally-founded stablecoin, terraUSD, and its bullish sister Luna, which saw a 99% fall after a crash in the market last week, bringing down the value of digital assets.

From the total number of investors, 94,000 held crypto assets worth more than ₩100 million ($78,902) on those platforms, while 4,000 held deposits over ₩1 billion ($789,020).

To ensure no overlapping or double-counting occurs, FSC reviewed all local crypto exchanges.

Around half of the total investors were holding deposits worth less than ₩1 million ($789), 29% held within the range of ₩1-10 million ($789-$7,890), and 13% held within the range of ₩10-100 million ($7,890-$78,902).

1.74 million of the investors were in their 30s, 1.48 million were in their 40s, and 1.34 million were under 30s. The remaining were in their 50s and 60s, making up 800,000 and 230,000, investors respectively.

During the cited period, 623 types of cryptocurrencies were exchanged.

Many complaints have been filed against the founders of Terraform Labs, creators of the terraUSD and luna, CEO Do Kwon and Daniel Shin, in the Seoul Southern District Prosecutors Office. Five investors, who lost up to ₩1.4 billion ($1,10 million) in the crash, have also sued the two founders.

LKB & Partners, who are representing Terraform Labs, explained that the two founders have been accused of fraud and for having collected money from investors without filing the necessary reports or obtaining proper authorization.

Koh Seung-beom, Chairman, FSC, stated that a total of around 38 billion was wiped from the investor’s balance sheet in the crypto collapse.

Local financial authorities have ramped up their investigation in the high-risk market and working to pass a bill that will protect stablecoin investors, akin to the European Union’s Markets in Crypto-assets (MiCA) regulation that was introduced in 2020.

Source credit: http://www.koreaherald.com/view.php?ud=20220519000597