Bitcoin (BTC) Traders Retreat as South Korean Exchange Profits Fall 78%
Key Takeaways
- •Operating profits at South Korean cryptocurrency exchanges dropped 78% in the first half of 2026, falling from 374.8 billion won to 81.6 billion won.
- •The figures come from an Oct. 1 report by the Korea Financial Intelligence Unit covering 26 registered virtual asset service providers in the licensed segment of the market.
- •Domestic exchanges must register with KoFIU and process user deposits through real-name verified bank accounts under legislation in effect since March 2021.
- •Trading fees on executed transactions are a primary revenue source for these platforms, so their operating results tend to follow overall trading activity.
- •Upbit, Bithumb, Coinone and Korbit are among South Korea's leading won-denominated venues, where Bitcoin remains one of the most heavily traded assets.
South Korean cryptocurrency exchanges saw operating profits collapse by 78% in the first half of 2026, falling to KRW 81.6 billion from KRW 374.8 billion, according to the Korea Financial Intelligence Unit (KoFIU), the country's financial intelligence body.
The official report, published on Oct. 1, covers 26 virtual asset service providers (VASPs) registered in the country, meaning the figures describe the licensed segment of South Korea's crypto market.
Regulatory backdrop
KoFIU, which operates under the Financial Services Commission, is responsible for anti-money-laundering supervision of South Korea's virtual asset industry. Under the amended Act on Reporting and Using Specified Financial Transaction Information, in force since March 2021, domestic crypto exchanges must register with the agency and process user deposits through real-name verified accounts held in partnership with local banks. That combination of registration and a bank partnership defines which platforms can lawfully operate for Korean users.
Market context
South Korea has long ranked among the world's most active cryptocurrency trading markets. Upbit, Bithumb, Coinone and Korbit are among the country's leading won-denominated trading platforms, and Bitcoin (BTC), the largest cryptocurrency by market capitalization, is consistently one of the most heavily traded assets on domestic venues. Korean exchanges are also subject to ongoing compliance obligations, including information security certification and travel-rule requirements for cross-border transfers. Because fees on executed trades are a primary revenue source for platforms of this kind, their operating results tend to track the level of trading activity in the market.
The KoFIU figures provide an official measure of the operating environment for the country's licensed trading platforms during the first six months of 2026, a period in which Bitcoin traders pulled back from the market according to the report's publication. A follow-up report covering the second half of 2026 would offer the next official point of comparison for how conditions at these venues evolve.
This content was first published on COINOTAG.
