Upbit Emerges as South Korea’s Dominant Crypto Exchange with an 80% Market Share
Upbit, a Seoul-based exchange located in the upscale Gangnam district, has captured the majority of the Korean crypto market.
The platform currently dominates over 80% of the trading volumes in Korea, a level of market share unparalleled by any other major crypto exchange , according to a report from Bloomberg .
Its popularity among local investors has pushed it to the ranks of the top five exchanges globally, competing head-to-head with industry giant Coinbase.
In fact, Upbit’s customers accounted for nearly one-fifth of the total deposits held by its primary banking partner, a development that drew criticism from a South Korean lawmaker.
Meanwhile, new regulatory measures introduced to protect investors may unintentionally reinforce Upbit’s stronghold on the market.
The regulations require crypto exchanges to bolster their reserves, obtain investor protection insurance, and enhance monitoring of suspicious transactions, all of which demand substantial capital and manpower .
Meeting these requirements will be more feasible for well-established exchanges like Upbit, potentially widening the gap between them and their competitors.
In light of the regulatory landscape, Singapore-based Crypto.com recently postponed its planned launch in South Korea, citing the need for further communication with regulators.
Upbit, the largest crypto exchange in South Korea, accounts for more than 80% of the trading volume in the country. The exchange has become one of the top five largest exchanges in the world in terms of trading volume, moving closer to Coinbase – BBG pic.twitter.com/f5jzHTBPIP
— NekoZ (@NekozTek) April 25, 2024
Despite setbacks such as the TerraUSD stablecoin’s collapse in 2022, South Korean traders remain
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