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      South Korea Leads East Asia in Cryptocurrency Economy with $449.1 Billion

      Chainalysis released its "East Asia Cryptocurrency Adoption Report" on October 5, revealing that South Korea's cryptocurrency economy is projected to reach $449.1 billion from July 2025 to June 2026, marking a 12.3% increase from the previous cycle. This positions South Korea as the largest retail trading center in East Asia, significantly ahead of Japan, Hong Kong, mainland China, and Taiwan, which are estimated at $228.3 billion, $192.2 billion, $176.3 billion, and $140.4 billion, respectively.

      The report highlights a notable shift in South Korea's market dynamics, particularly with the rise of AI token trading, which has become the largest thematic sector in won trading. By June 2026, AI-related cryptocurrency assets surpassed the popularity of traditional payment tokens, with Worldcoin (WLD) achieving a trading volume of $7.41 billion during the observation period. This trend indicates that South Korean retail investors are increasingly diversifying their AI investments from the stock market into the cryptocurrency space.

      Despite the robust retail activity, institutional participation in South Korea's cryptocurrency market remains limited. Local banks and brokerages are in the early stages of forming digital asset teams and exploring stablecoin, custody, and tokenization initiatives. However, significant corporate investment in cryptocurrencies has yet to materialize. The anticipated implementation of a cryptocurrency asset income tax in 2027 and potential easing of corporate trading restrictions could lead to a reevaluation of the current retail-dominated landscape in South Korea.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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