ata from crypto data platform CCData shows a major milestone was reached in November - for the first time, the Korean won accounted for more fiat currency trading volume against Bitcoin than the US dollar.
The won comprised 42.8% of fiat trading activity for BTC last month, while the dollar dropped to second place. This underscores the growing influence of South Korean crypto exchanges and traders on global Bitcoin markets.
Surge in Market Share for Korean Exchanges
CCData's analysis also reveals that excluding stablecoins and some trading pairs, the overall market share of centralized exchanges based in South Korea climbed substantially. Their share increased to 12.9% in November from just 5.2% at the start of 2023.
This gain was led by major players like Upbit, which has seen a sharp rise in trading volumes that coincided with the broader crypto market rally in recent months.
Optimism Around Crypto Regulations Drives Demand
Industry observers point to both fundamental and technical factors contributing to increased Korean won trading for BTC. The surge in trade volumes aligns with optimism over potential approval of crypto ETFs in the US that could drive mainstream adoption.
Meanwhile, upgrades on South Korean trading platforms have enhanced the user experience and attracted more local traders.
South Korea Maintains Its Crypto Industry Standing
Despite setbacks like the collapse of TerraUSD and Luna, South Korea maintains its position as a global leader in crypto. Regulations are more favorable there compared to other nations, helping domestic companies and traders to continue playing an outsized role in driving Bitcoin price movements.
Data indicates Korean investors are channeling funds not just into BTC but also diversifying into large-cap altcoins, making them important swing factors across the entire cryptocurrency asset class.
The dominance of the Korean won over the dollar as the top fiat currency paired with Bitcoin underscores how local traders are at the forefront of the emerging crypto industry.
As regulatory and market dynamics evolve, South Korea is certain to remain an influential player in global digital currency markets.