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International Business Times
International Business Times
World
Marvie Basilan

S. Korea's Won Passes USD As Country's Most Used Currency In Crypto Trading: Research

South Korean 10,000 won note is seen on U.S. 100 dollar notes in this picture illustration taken in Seoul. (Credit: Reuters)

KEY POINTS

  • The South Korean won posted $456 billion in trading volume, compared to the USD's $445 billion
  • Upbit still takes up majority of the market share, but competition from Bithumb is picking up
  • Rising competition and improving macroeconomic conditions helped boost crypto trade in South Korea

The South Korean won was the most used currency for cryptocurrency trading in South Korea during the first quarter of the year, passing the popular U.S. dollar, the latest data showed.

During Q1 2024, the South Korean won lodged $456 billion in trading volume on centralized crypto exchanges compared to the U.S. dollar's $445 billion, according to a report by data-driven crypto market trend analysis firm Kaiko.

South Korea is one of the most active crypto markets around the world even as it has some of the highest premiums, defying the rest of the world as crypto adoption in the country continues to expand. For instance, Bitcoin (BTC) was trading at $73,000 in the country when it was priced at around $69,000 last week.

Within South Korean shores, there are five major exchanges – fully licensed – that dominate the market. Upbit leads the pack, according to Kaiko data, taking up 82% of the total market share in the past three years.

Competition ramped up in the recent bull runs, with Bithumb and Korbit "launching aggressive zero-fee campaigns in late 2023." The other major market players are Coinone and Gopax. Upbit may face tighter competition with Bithumb in the coming years, as the latter tripled its market share in the months after its zero-fee policy.

The competition, along with improving macroeconomic trends in the country, has helped boost trade volume in Korean crypto markets, Kaiko noted. It expects sentiment not just in South Korea, but also in the wider Asia Pacific to be boosted by the approval of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong.

Meanwhile, competition may fire up further as some of the world's largest cryptocurrency firms are moving to get a chunk of the crypto-hungry South Korean market.

Earlier this month, Crypto.com announced that it will launch in South Korea on April 29. "We are incredibly excited to be launching the Crypto.com App for retail users in South Korea – a market of tremendous importance to the growth of our business, and one in which consumers are very interested in crypto," said Eric Anziani, president and chief operating officer at the company.

Binance, the world's largest crypto exchange by trading volume, acquired a major stake in Gopax last year. However, it is unclear when Binance will complete its acquisition of the South Korean exchange due to local financial regulators repeatedly pushing back the transfer of ownership to the Changpeng Zhao-founded crypto giant, reportedly due to the U.S. Securities and Exchange Commission's (SEC) lawsuit.

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