South Korea's top five won-based cryptocurrency exchanges reported a drastic 88% decline in daily trading volume compared to the previous year. As of July 20, total volume reached approximately KRW 412.7 billion, equivalent to $280 million, according to ZDNet Korea.
Impact on Exchange Revenues
The trading volume drop has significantly affected exchange earnings. Upbit's operator, Dunamu, disclosed that its first-quarter revenue decreased by 55%, with operating profit plunging 78% year over year. Korbit, another major exchange, has been impacted as well, reflecting broader industry challenges in the region.
Market Context and Regulatory Environment
South Korean exchanges continue to navigate a stricter regulatory landscape amid concerns about anti-money laundering compliance. This macro trend further pressures trading activity and exchange profitability. The volume contraction contrasts sharply with previous years when South Korea was a leading crypto trading hub.
In the market, South Korea's crypto prices have seen muted responses following the volume slump.
