On July 19, 2024, the "Virtual Asset User Protection Act" came into effect in South Korea. The new encryption law aims to create a safer environment for virtual asset users and establish a sound order in the virtual asset market. However, there was a direct impact on trading volumes on major South Korean crypto exchanges, including Upbit. These exchanges reported significant declines in trading volumes.
Impact on Upbit and other Korean CEXs
Founded by Dunamu in October 2017, Upbit quickly became the largest crypto exchange in South Korea. In addition, Upbit exchange has maintained its leading position in the market due to its user-friendly interface and wide range of supported cryptocurrencies.
However, according to Coingecko data, Upbit’s trading volume has plunged 29.4% to $1.5 billion in the past 24 hours. Moreover, this sharp drop highlights the market’s initial reaction to the new regulatory environment.
Founded in 2013, Bithumb is one of South Korea’s oldest and most well-known cryptocurrency exchanges. It has consistently ranked in the top 50 in terms of trading volume and user base. Despite Bithumb’s prominence, trading volume fell by 24.7% to $452.22 million in the past 24 hours.
Founded in 2014, Coinone has positioned itself as a major player in the Korean crypto market. It offers a robust trading platform and a variety of services, including staking and lending. Coinone was hit the hardest among major exchanges, with trading volumes plunging 38.4% to $23.36 million. Moreover, this sharp drop reflects the market's heightened sensitivity to regulatory changes.
One of South Korea’s pioneer exchanges, Korbit was founded in 2013 and has played a major role in driving cryptocurrency adoption in the country. Korbit mirrored Coinone’s move over the past 24 hours, with a 38.4% increase to $5.07 million.
