Upbit, South Korea’s largest crypto exchange, has a staggering 80% share of the country’s trading volume. This dominance has placed it among the top five global exchanges.
Global Recognition
Upbit’s dominance in South Korea is unmatched in other major crypto hubs. Over 6 million Koreans, or 10% of the population, traded cryptocurrencies in the first half of 2023. The exchange’s daily trading volume of $2.84 billion rivals that of Coinbase.
Korean Market Dynamics
Altcoins account for a significant 80% of trading volume on Korean exchanges, compared to 50% on global platforms. South Korea has become a hub for “keenest crypto traders with a taste for high-risk, high-reward tokens.”
Regulatory Impact
South Korea’s upcoming Virtual Asset User Protections Act will impose stricter requirements on exchanges. Smaller exchanges have struggled to comply, leading to shutdowns. However, Upbit’s resources and established position may give it an advantage.
Challenges to Dominance
Competing with Upbit’s dominance has proven difficult. Bithumb briefly challenged the exchange but lost market share after ending its zero-fee campaign. Entering the South Korean crypto market requires a significant investment in compliance and resources.
