Report: South Korean cryptocurrency providers to net $2.7 billion in 2021

According to an investigation by the country's primary financial regulator, South Korea's virtual asset service providers (VASPs) made a substantial net profit from trading activities last year, amounting to more than 3.3 trillion won ($2.78 billion). This is the first such investigation since VASPs were required to register with the Korea Financial Intelligence Unit (KoFIU) under the revised Act on Reporting and Use of Specified Financial Transaction Information last year. As of the end of December 2021, a total of 29 VASPs were approved, including 20 cryptocurrency exchanges, five cryptocurrency wallets, and 4 KRW-based exchanges. This number has since increased by two wallets and two cryptocurrency exchanges, bringing the total number of VASPs operating legally in South Korea to 33. Of these exchanges, won-based exchanges dominate market share, with 99.3 percent of their domestic operating profits, while cryptocurrency exchanges account for 0.7 percent. The watchdog said some cryptocurrency exchanges could undergo restructuring. Founded in 2001, KoFIU is an organization of the Financial Services Commission whose role is to monitor and supervise financial markets and enforce policies related to anti-money laundering practices.