Shift in South Korea’s Crypto Landscape as Bithumb Gains Momentum
In South Korea, Upbit has long been the dominant player in the crypto market. However, there is now a shift taking place as Bithumb starts to capture Upbit’s market share.
This change comes amidst a surge in crypto trading activity in South Korea, particularly with the rise in Bitcoin trading.
Bithumb’s Market Share Peaks at 72%
The crypto trading activity in South Korea has seen a significant increase, especially with the recent market rebound. Both Upbit and Bithumb, the top exchanges in the country, experienced a peak in their trading volumes during the first week of January 2024. These exchanges have been engaged in intense competition with each other.
A recent report from Kaiko reveals that Bithumb briefly reached an all-time high market share of 72% in early February compared to its main competitor, Upbit.
emerged as the leader in crypto trading in the country, with its Bitcoin volume nearing $3 billion, while Upbit’s volume stayed below $1 billion. Bithumb’s strategy to strengthen its domestic market presence included being the first major Korean exchange to eliminate transaction fees for all supported digital assets.
However, this advantage was short-lived as Upbit’s trading volume recovered shortly after.
Bithumb is currently preparing to enter the KOSDAQ, South Korea’s equivalent of the Nasdaq, by late 2025. This would make it the first digital asset company to go public on the South Korean stock market. Samsung Securities is reportedly being considered as a potential underwriter for this process.
Setback For Bithumb’s Expansion
Despite its growth, Bithumb has faced some challenges.
The crypto exchange failed to secure a deal with major local lender KB Kookmin Bank to establish real-name accounts. Bithumb Korea had intended to form a new partnership with KB Kookmin Bank to expand its user base, as its existing contract with NH NongHyup Bank is set to expire soon.
According to the Act on Reporting and Using Specified Financial Transaction Information, virtual asset exchanges in Korea are required to use real-name accounts for transactions involving the Korean won through commercial banks. Failure to comply with this requirement could hinder Bithumb’s efforts to attract more traders.
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