South Korean Crypto Trading Volumes Soar, Outpacing Stock Market

South Kora’s crypto trading volume boom also surpassed the nation’s stock market by 22% on the same day. Ripple’s XRP led the altcoin rally by soaring to a yearly high of $2.80. Other altcoins like DOGE, XLM, ENS, and HBAR also saw impressive gains. This increased activity coincided with South Korea’s decision to delay crypto taxation until 2027. Meanwhile, DWF Labs announced its relocation to Abu Dhabi to expand its Web3 footprint, and Coinbase withdrew its application to enter Turkey’s growing crypto market. 

South Korean Investors Dive Into Altcoins

South Korea's crypto market experienced a remarkable surge after retail trading volumes reached $18 billion in 24 hours. This allowed the crypto market to outpace the nation’s entire stock market by 22%, according to a Dec. 2 report by 10x Research. Markus Thielen, the founder of 10x Research, shared that this was the second-highest trading volume of the year for South Korean retail investors, driven largely by high-momentum altcoins.

Among the standout performers, Ripple’s XRP accounted for about $6.3 billion of the trading volume, followed by Dogecoin (DOGE) at $1.6 billion, Stellar (XLM) at $1.3 billion, Ethereum Name Service (ENS) at $900 million, and Hedera (HBAR) at $800 million. Thielen noticed that these tokens, which are often referred to as “dino coins” by crypto natives because of their longstanding presence in the market, saw big gains over the past week. XRP, ENS, and HBAR surged by about 89%, 74%, and 152%, respectively.

BTC funding rate vs Korea crypto trading volumes (Source: 10xResearch)

The report also shed some light on a divergence between Bitcoin's relatively mild funding rate, sitting at 15% annualized, and the explosive trading activity in altcoins. Thielen interpreted this as a strong indicator that the crypto market entered an ”alt season,” where momentum-driven trends dominate trading. 

Ripple’s XRP has been at the forefront of this rally after it climbed from $0.50 to a new yearly high of $2.80 in just a month. This growth propelled XRP to become the third-largest crypto asset by market cap after it jumped past both Solana (SOL) and Tether (USDT). 

XRP’s price action over the past month (Source: CoinMarketCap)

South Korea Delays Crypto Tax to 2027

The rise in altcoin trading may be related to the news that South Korea's crypto tax launch was delayed yet again, and is now set to take effect in January of 2027. The decision was announced after lawmakers reached an agreement to postpone the measure for an additional two years. 

The ruling People’s Power Party (PPP) secured the delay despite opposition from the Democratic Party (DP), which wanted to amend the tax plan. The DP's proposal to raise the annual tax threshold for crypto traders to 50 million won (or approximately $36,000) failed to gain traction, and left the government’s original amendment intact.

DP floor leader Park Chan-dae announced the agreement at a Dec. 1 press conference, and mentioned that there is a need for more institutional preparation before taxing crypto traders. Park’s comments agreed with earlier statements from DP leader Lee Jae-myung, who argued that crypto taxation was not yet systematically feasible. The decision now allows the DP to redirect its focus to other legislative battles, including the taxation of dividend income and inheritance tax reforms.

Park Chan-dae speaking at the Dec.1 press conference

This latest delay was the third time South Korea’s crypto tax was postponed since lawmakers initially approved it in December of 2020. It was originally set to launch in January of 2021, but the tax’s implementation was first pushed back to January 2023, then to January 2025, and now to 2027. 

The DP recently tried to adhere to the 2025 timeline while raising the tax threshold to align with stock market trading rules, claiming that the majority of investors would avoid taxation under their proposal. However, the PPP resisted these efforts and prevented the rival bill from moving forward.

The repeated delays caused a lot of frustration among South Korean crypto traders. One investor even called the situation a “complete mess” and blamed both the government and opposition for poor handling of the issue. However, many crypto investors still welcome the tax postponement.

Abu Dhabi Becomes DWF Labs' New Home

Crypto is making headlines in other countries as well. Well known Web3 venture capitalist and crypto market maker, DWF Labs, announced plans to relocate its headquarters to Abu Dhabi, UAE. The move was confirmed by founder and CEO Andrei Grachev on X, and its main goal will be to improve the firm's involvement in real-world assets (RWA) and to expand financial services across the Middle East. 

The company's structure already includes regional offices in Singapore, Dubai, and Switzerland. Both Abu Dhabi and Dubai, which are both part of the UAE, have been competing to attract businesses by offering unique regulatory frameworks and economic zones. 

DWF Labs is currently listed as an ecosystem partner of Dubai’s Crypto Centre in the Dubai Multi Commodities Centre (DMCC), which houses a number of major crypto companies like Bybit, Solana, and Binance. Ripple also operates in the UAE from the Dubai International Financial Centre (DIFC). Here it benefits from tailored digital asset regulations introduced earlier this year.

Abu Dhabi’s virtual asset ecosystem is concentrated in the Abu Dhabi Global Market (ADGM), which is a financial hub known for its independent legal framework based on English law and its progressive crypto regulations. It was first introduced in 2018. The ADGM also recently adopted comprehensive DLT Foundations Regulations in 2023. Companies like Blockdaemon, M2, Laser Digital, and even traditional financial giants like BlackRock have established operations there.

DWF Labs emerged in 2022 as an offshoot of a high-frequency trading firm, and boasts an impressive portfolio that is valued between $72 billion and $77 billion. It also consists of over 700 projects. 

Coinbase Abandons Turkish Crypto Expansion Plans

Meanwhile, Coinbase withdrew its pre-application to enter the Turkish crypto market, according to documents released by the Turkish Capital Markets Board (CMB). The company initially joined more than 90 other enterprises seeking entry into Turkey’s growing crypto market but now requested a liquidation of its application. The reasons behind Coinbase’s decision have not been revealed yet.

A Coinbase spokesperson stated that the company routinely evaluates markets for expansion, and mentioned that its strategy is guided by market conditions, regulatory environments, and internal priorities. This aligns with Coinbase’s mission to deliver accessible and secure crypto services globally.

Coinbase applied for entry into the Turkish market in August, and joined other well known crypto firms like KuCoin and Gate.io. However, by the end of November, at least 14 companies, including Coinbase and Bitget, withdrew their applications. 

Despite these withdrawals, Turkey is still a major player in the crypto space. It ranks as the fourth-largest market globally by trading volume and holds the 11th spot on Chainalysis’s 2024 Global Crypto Adoption Index.