Bitcoin Breaks Records, But South Korea Struggles to Keep Up

In 2024, Bitcoin achieved the “dream milestone” of $100,000, marking a historic year for the cryptocurrency market. This milestone was driven by two key events: the U.S. SEC’s approval of a Bitcoin spot ETF in January and Donald Trump’s presidential election victory in November. Following Trump’s win, Bitcoin’s price surged by 61.6%, jumping from $67,000 to $108,000.

The South Korean market painted a contrasting picture. The implementation of the Virtual Asset User Protection Act in July was a key milestone in institutionalizing the industry. However, strict regulations have blocked foreign exchanges, maintaining a restricted competitive landscape. As a result, market concentration intensified, with Upbit dominating 78% of the market share.

Industry leaders have voiced concerns that the current regulatory framework is overly focused on user protection while stifling innovation and competition. Lee Seok-woo, CEO of Dunamu, remarked, “While the United States and Japan are integrating virtual assets into their broader monetary strategies, South Korea remains stuck in the regulatory phase.”

Experts stress the importance of developing a sophisticated regulatory framework that addresses the unique dynamics of various digital assets, such as security tokens and stablecoins. Such measures are deemed essential for South Korea to establish a balanced and competitive market environment.