South Korea recently experienced a remarkable surge in cryptocurrency trading, reaching a staggering $34.2 billion in just 24 hours. This unprecedented trading volume was triggered by a temporary declaration of emergency martial law by President Yoon Suk-yeol. The trade activity unfolded across several major cryptocurrency exchanges, with notable participation from Upbit, Bithumb, Coinone, Korbit, and Gopax, as indicated by data from CoinMarketCap.
Surge in Trading Volume
Leading the trading frenzy was Upbit, the largest cryptocurrency exchange in South Korea, which alone processed an astonishing $27.25 billion. This overall volume nearly doubled the $18 billion reported just a day earlier, a figure that itself had overshadowed the daily turnover of the local stock market. The spike in trading was the highest single-day volume of the year, according to a report from the local crypto outlet Digital Asset.
Political Turmoil and Market Reactions
The surge in trading activity coincided with a period of political instability. Late on Tuesday, President Yoon declared martial law, citing alleged threats to democracy posed by “anti-state” forces associated with the opposition left-wing party. The emergency measures, lasting six hours, sent shockwaves through the trading community, leading to a drastic sell-off across local exchanges.
During this tumultuous period, Bitcoin’s price on Upbit plummeted to 88 million won (approximately $62,182) at one point, as reported by News1. Other cryptocurrencies also faced sharp declines in value, and many exchanges struggled with service outages due to the overwhelming trading activity. By Wednesday morning, lawmakers convened for an emergency session and unanimously voted to overturn the martial law, subsequently leading President Yoon to rescind the directive.
Political Fallout and Speculations
The aftermath of the martial law declaration has stirred significant political repercussions. The opposition party announced intentions to file treason charges against President Yoon and the Ministers of Defense and Interior while advocating for their impeachment. Additionally, speculation regarding President Yoon’s political future intensified on the decentralized prediction platform Polymarket, where the odds for a $500,000 bet on his early departure from office surged to 78% before settling at 47%. Should he remain in office, his term is slated to conclude in May 2027.
South Koreans’ Growing Interest in Crypto
Amidst political uncertainties, a recent survey indicated a growing trend among young South Koreans shifting their trust from traditional retirement plans to cryptocurrencies and stocks. The study revealed that over three-quarters of respondents aged 20-39 expressed distrust in state-issued pensions. More than half of those devising their own pension strategies reported that they were utilizing stocks and cryptocurrencies to build their retirement funds.
Interestingly, even election candidates have begun to enter the cryptocurrency landscape, with about 7% of them reportedly owning digital assets according to a report by Yonhap that analyzed asset disclosures.
Regulatory Developments in South Korea
In light of the rapid changes in the cryptocurrency market, South Korea is moving towards implementing stricter regulations regarding token listings on exchanges, including measures to block tokens that have experienced security breaches. Furthermore, the country has postponed the introduction of a 20% tax on cryptocurrency gains for the third time since it was first proposed in 2021. The latest delay, announced earlier this month, pushes the tax implementation to 2025, following negotiations between the Democratic Party of Korea (DPK) and the ruling People Power Party (PPP) during budget discussions.