Cryptocurrency Exchanges in Korea Surge Amidst Bitcoin Rally

Upbit, South Korea’s largest cryptocurrency exchange, recorded a transaction volume exceeding 12 trillion won ($8.9 billion) in the last 24 hours, marking the first instance since 2021 that the figure surpassed 10 trillion won. As of Friday, the 24-hour transaction volume reached 9.96 trillion won, comparable to the average daily transaction volume of Kospi, the country’s primary benchmark index, which hovers around 10 trillion won.

Taking into account Upbit’s 0.05 percent commission, the exchange is estimated to have generated over 6 billion won in revenue within the past day. The overwhelming demand prompted a server slowdown at K Bank, Upbit’s partnering lender responsible for providing real-name accounts for cryptocurrency transactions. To acquire bitcoin on Upbit, users are required to deposit funds at K Bank and subsequently transfer the amount to the exchange.

Meanwhile, Bithumb, another major cryptocurrency exchange in South Korea, reported transactions totaling 3.41 trillion won in the last 24 hours. With a 0.04 percent transaction commission, Bithumb accrued approximately 1.4 billion won in a single day.

According to CoinMarketCap, a crypto intelligence platform, Upbit commands roughly 70 percent of the local market share, with Bithumb following at 25 percent, solidifying their positions as the top two players in the South Korean market.

Although the price of bitcoin in South Korea reached a record high of 90 million won on Thursday, it experienced a slight dip the following day, trading at 86.61 million won on Upbit and 86.39 million won on Bithumb.

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The influx of spot bitcoin exchange-traded funds (ETFs) contributing to the notable surge in bitcoin prices has fueled expectations for the introduction of spot ETF products linked to ethereum. Over 10 financial services, including BlackRock and Fidelity Investments, have submitted ethereum ETF applications to the US Securities and Exchange Commission (SEC), with the SEC expected to announce its stance on May 23.

Despite South Korea’s keen interest in cryptocurrencies, spot bitcoin ETFs remain inaccessible to Korean investors due to regulatory restrictions. In January, local authorities declared that trading related products for local securities firms could potentially be deemed illegal, shortly after the US SEC authorized the financial product.