South Korea's Crypto Exchange Profits Plunge 78% in H1 Amid Trading Slump

The regulated crypto industry in South Korea took a sharp hit in the first half of 2026, with operating profits at virtual asset exchanges falling by 78%.

This decline is attributed to lower trading activity, weaker market valuations, and reduced customer deposits denominated in won, according to government figures released this week.

The data from KoFIU shows that average daily trading volume at domestic exchanges fell by 44%, while total market capitalization declined by 33% and won-denominated deposits fell by 35%

The results underscore how quickly trading-oriented business models can be pressured when overall retail risk appetite shifts elsewhere, particularly as some investors appear to be reallocating capital toward domestic equities.