Buying and selling quantity throughout South Korea’s 5 main won-based crypto exchanges fell 54.6% 12 months over 12 months within the first half of 2026 as liquidity grew to become more and more targeting market chief Upbit.
South Korea crypto quantity drops under $367B
Upbit, Bithumb, Coinone, Korbit and Gopax generated about $366.58 billion in mixed buying and selling quantity through the first six months of the 12 months, NexBlock reported. That represented a 54.6% decline from the corresponding interval in 2025.
The contraction continued in July. From July 1 via July 27, the 5 exchanges recorded cumulative buying and selling quantity of roughly 17.34 trillion gained, down 16.9% from the identical interval in June.
The figures level to weaker exercise throughout South Korea, one among Asia’s most lively retail crypto markets. In addition they present that decrease general quantity has not affected all exchanges equally.
Upbit processed about 11.69 trillion gained through the July interval. Its buying and selling quantity fell 10%, however its market share elevated from 62.3% to 67.4% as competing platforms suffered steeper declines.
Bithumb recorded roughly 4.71 trillion gained in quantity. Its share of the five-exchange market dropped from 30.7% to 27.1%, widening the hole between Upbit and Bithumb to 40.3 share factors.
Upbit beneficial properties as liquidity turns into concentrated
NexBlock attributed the altering aggressive panorama to liquidity shifting towards the biggest platforms through the broader market slowdown.
Deep liquidity can entice extra merchants by supporting bigger orders with much less worth slippage. That benefit can reinforce the place of main exchanges when general exercise declines, leaving smaller platforms with fewer trades and thinner order books.
Coinone, Korbit and Gopax now face rising strain to distinguish themselves past retail spot buying and selling. In keeping with NexBlock, smaller exchanges are exploring partnerships with securities corporations, institutional providers and inner restructuring.
Future competitors may due to this fact rely much less on headline buying and selling quantity and extra on stablecoin liquidity, regulatory compliance, institutional entry and cooperation with conventional monetary corporations.
For US buyers, South Korean trade information can present perception into retail demand in a significant Asian market, though the won-based platforms primarily serve home customers. Lowered Korean quantity could weaken one supply of worldwide altcoin liquidity and worth discovery, notably for tokens that traditionally attracted robust native buying and selling curiosity.
Crypto tax may reshape buying and selling exercise in 2027
The quantity decline comes as South Korea prepares to implement its long-delayed cryptocurrency tax.
Finance Minister Koo Yun-cheol confirmed on July 29 that the federal government will start taxing crypto beneficial properties on Jan. 1, 2027, as beforehand scheduled.
“We’re pushing ahead with the plan to tax cryptocurrency beginning subsequent 12 months as scheduled,” Koo mentioned.
Earnings generated by transferring or lending digital property will likely be categorised as different revenue. Annual beneficial properties exceeding 2.5 million gained, or about $1,740, will face a 20% nationwide tax, whereas an area revenue tax will increase the mixed fee to 22%.
Traders who stay under the annual threshold is not going to owe tax beneath the framework. Taxpayers are anticipated to file their first returns in Might 2028 for beneficial properties earned throughout 2027.
The coverage creates a further consideration for home merchants after three earlier delays. Its impact on trade quantity will rely partly on how platforms implement transaction reporting and cost-basis calculations earlier than the principles take impact.
Smaller exchanges search new sources of progress
South Korea is concurrently increasing state-backed funding in strategic industries, although the initiative is separate from its crypto tax and trade insurance policies.
The federal government permitted plans for a brand new account beneath the Korea Funding Company, the nation’s sovereign wealth fund. The account will start with at the least 20 trillion gained, or roughly $13.7 billion, and will make investments domestically in synthetic intelligence, information facilities and different strategic sectors.
KIC has traditionally centered on abroad property. The expanded mandate displays a wider effort to direct institutional capital towards home industries whereas in search of long-term returns.
For crypto exchanges, the instant problem stays rebuilding exercise whereas complying with tighter guidelines. Upbit’s rising market share suggests smaller platforms might have institutional partnerships, stablecoin providers, or structural modifications to compete in a market the place complete buying and selling quantity continues to fall.
