Binance Draws Korean Traders with Stock-Linked Derivatives

Korean cryptocurrency traders are increasingly turning to Binance, the world's largest exchange, as domestic exchanges struggle to keep up. According to data from crypto analytics platform Wu Blockchain, Korean visits to Binance rose by 14.74% in July compared to the previous month.

This surge in traffic is largely driven by Binance's introduction of stock-linked derivatives that cannot be traded on local exchanges. Since June, Binance has expanded its lineup with perpetual futures based on Korean-listed stocks such as Samsung Electronics and SK hynix.

These products allow traders to take advantage of 24-hour trading with leverage of up to 50 times. While Binance blocks trades from accounts that have completed Know Your Customer (KYC) verification under Korean names, investors can still trade futures based on overseas-listed ETFs like the KORU triple-leveraged KOSPI ETF listed on the New York Stock Exchange.

Upbit, Korea's largest exchange, saw a decline in traffic of 16% last month, with just 4.16 million website visits. This is in stark contrast to Binance, which recorded 36.04 million total visits in July, with Korean visitors accounting for an estimated 8.34%.

The shift towards Binance reflects the growing demand for a wider range of derivatives and investment opportunities. Industry officials acknowledge that there may be a need to review ways to accommodate this demand within Korea's regulated system.