South Korea’s second-largest cryptocurrency exchange, Bithumb, is in fierce competition with market leader Upbit.

South Korea’s cryptocurrency landscape has long been dominated by Upbit. However, things appear to be changing as Bithumb is gaining momentum and gradually taking away Upbit’s market dominance.

The latest development comes as cryptocurrency trading activity in South Korea has intensified, particularly bitcoin trading.

Bithumb’s market share peaked at 72%

Cryptocurrency trading activity in South Korea has increased significantly, especially in light of the broader market rebound. The country’s top exchanges Upbit and Bithumb both saw their trading volumes peak in the first week of January 2024. These exchanges have been in fierce competition with each other.

Recent findings from Kaiko show that Bithumb briefly reached an all-time high market share of 72% in early February compared to its main competitor Upbit.

In January, Bithumb became the leader in cryptocurrency trading in the country, with its Bitcoin trading volume approaching $3 billion, while Upbit’s volume remained below $1 billion. Bithumb’s strategy to strengthen its influence in the domestic market includes becoming the first major exchange in South Korea to eliminate trading fees for all supported digital assets.

While the move briefly boosted Bithumb’s market share, it was not a lasting advantage as Upbit’s trading volume recovered shortly thereafter.

Bithumb is currently preparing to enter the Korean Kosdaq market, the equivalent of the US Nasdaq, in the second half of 2025. The move will make it the first digital asset company to be listed on the Korean Kosdaq stock market. The exchange has reportedly invited Samsung Securities as a potential underwriter for the process.

Bithumb’s expansion suffers setback

Despite its growth, Bithumb has also experienced its fair share of turbulence.

Due to disclosed reasons, the cryptocurrency exchange failed to reach an agreement with KB Kookmin Bank, a major local bank, to establish real-name accounts. Bithumb Korea plans to establish a new partnership with KB Kookmin Bank to expand its user base as its existing contract with NH NongHyup Bank will expire on March 24.

Under the Specified Financial Transaction Information Reporting and Use Act, virtual asset exchanges in South Korea must use real-name accounts through commercial banks for transactions involving the Korean won. Failure to comply with this requirement could hamper Bithumb's efforts to attract more traders. #Bithumb  #韩国