South Korea Crypto Trading Volume Drops 19.56% in a Week
South Korea's cryptocurrency trading volume experienced a significant decline last week, dropping 19.56% to approximately 20.5 trillion won ($15.1 billion) in the seven days ending October 2. This sharp decrease, amounting to a loss of about 5 trillion won ($3.7 billion), followed a broader trend of weakening market activity in the country. The figures were compiled from the five largest exchanges: Upbit, Bithumb, Coinone, Digital X, and Gopax, with no specific reason identified for the pullback.
Upbit maintained its dominant position, though its market share shrank by 3.3 percentage points to 64.04%. Bithumb saw a slight increase, rising 1.893 points to 26.66%. The remaining exchanges, Coinone, Digital X, and Gopax, held 6.58%, 2.71%, and 0.02% of the market, respectively. The data highlighted concerns about liquidity, particularly for exchange-exclusive tokens with low market capitalization.
The decline in trading volume aligns with a broader downturn in South Korea's crypto market. Regulatory data revealed that average daily exchange volume plummeted 44% in the first half of 2026, while operating profit dropped 78%. The Korea Financial Intelligence Unit (KoFIU) surveyed 26 registered virtual asset service providers, emphasizing the risks associated with thinly traded tokens. The shift in household capital toward traditional equities, reflected in the KOSPI's performance, also contributed to the crypto market's softness.
Looking ahead, the Financial Services Commission's August framework, which tightens regulations on virtual asset service providers (VASPs), is set to take effect. This includes expanded travel rule requirements for transfers between registered VASPs and mandatory reporting for overseas transactions exceeding 10 million won. The upcoming regulatory changes, combined with the current market slump, pose challenges for exchanges and traders alike.