South Koreas 449.1 Billion Crypto Economy Leads East Asia with AI Tokens in Focus

South Korea’s crypto economy has reached a staggering $449.1 billion, making it the largest in East Asia and marking a 12.3% increase from the previous year. This growth is driven primarily by retail investors, with domestic exchange activity rising 16.3% year-over-year. Notably, AI-related cryptocurrencies have emerged as a standout trend, accounting for about 18% of all won-denominated trading, the highest share among thematic asset groups.

The report by Chainalysis, released on October 6, highlights that South Korea’s crypto market outpaces other East Asian nations like Japan ($228.3 billion), Hong Kong ($192.2 billion), China ($176.3 billion), and Taiwan ($140.4 billion). AI tokens such as Worldcoin, Sahara AI, and Virtual Protocol have seen significant trading volumes, with Worldcoin leading at $7.41 billion. The rapid shift in investor preferences toward these tokens underscores the dynamic nature of the Korean market.

Looking ahead, the report suggests that the government’s plan to allow corporate participation in the crypto market and the introduction of a crypto income tax in 2027 could reshape the landscape. While major financial institutions are still hesitant to enter the market, the establishment of digital-asset teams and pilot projects indicates potential future growth. Chainalysis emphasizes that broader corporate involvement and regulatory changes will influence how both retail and institutional investors engage in the market.

Kwon Jun-hyuk, head of Chainalysis Korea, noted that the report highlights strong retail participation and a keen interest in AI-related cryptocurrencies. As corporate and institutional participation expands, the domestic crypto market is expected to become more diverse. Chainalysis remains committed to fostering a safer and more transparent market environment through reliable blockchain data and analysis.