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South Korean crypto providers post a net profit of $2.7 billion for 2021
Regulated South Korean VASPs facilitated over $1.7 trillion worth of crypto transactions for the year ending 2021. The total net profit from this activity is reported to have brought them up to $2.78 billion South Korean virtual asset service providers (VASPs) made, according to a survey by a unit within the country's main financial regulator. The survey announced Tuesday is the first of its kind since VASPs were required to register with the Korea Financial Intelligence Unit (KoFIU) last year, which amended the Law on Reporting and Use of Certain Financial Transaction Information. The aim of the survey, KoFIU argues, is to provide a better understanding of the cryptocurrency market based on statistical…
South Korean crypto providers post a net profit of $2.7 billion for 2021
- Regulierte südkoreanische VASPs ermöglichten Kryptotransaktionen im Wert von über 1,7 Billionen US-Dollar für das Jahr bis 2021
- Es wird berichtet, dass der Gesamtnettogewinn aus dieser Aktivität ihnen bis zu 2,78 Milliarden US-Dollar einbrachte
South Korean virtual asset service providers (VASPs) achieved performance, according to a Opinion poll from a unit within the country's main financial regulator.
The survey announced Tuesday is the first of its kind since VASPs were required to register with the Korea Financial Intelligence Unit (KoFIU) last year changed Act Relating to the Reporting and Use of Certain Financial Transaction Information.
The goal of the survey, KoFIU argues, is to gain a better understanding of the cryptocurrency market based on statistical data provided by individual entrepreneurs.
As of the end of December 2021, a total of 29 VASPs had received approval, including 20 “coin-only” exchanges, five crypto wallets and four Korean won exchanges. This number has since grown to include two additional coin-only exchanges, bringing the total number of VASPs legally operating in South Korea to 33.
Of these, Korean won-based exchanges were found to dominate their coin-only competitors in terms of market share with a 99.3% impact on domestic operating profits versus 0.7%. Some coin-only exchanges could undergo restructuring, the watchdog said.
Established in 2001, KoFIU is an organization within the Financial Services Commission whose mission is to oversee and monitor financial markets and implement anti-money laundering policies.
In the second half of 2021, total transactions on 24 “virtual asset exchanges” reached a staggering KRW 2.073 quadrillion (US$1.7 trillion), with an average daily transaction amount of KRW 11.3 trillion (US$9.4 billion), the survey said.
Regulation in the country has slowly evolved since the FSC banned the use of fundraising through ICOs in 2017. Although some local regulators still believe that current laws are not yet sufficient to counter money laundering practices, especially as trading volumes for crypto stocks begin to catch up.
“Although the virtual asset market poses high risks for money laundering, the current status of the AML workforce (8%) is inadequate and needs to be improved.”
South Korea ranks 16th in crypto adoption with 1.9 million people, or 3.79% of its 55.7 million population, owning some form of crypto assets Data from the payment provider Triple A.
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The post South Korean Crypto Providers Book $2.7B Net Profit for 2021 is not financial advice.