South Korea, is a vibrant hub for crypto enthusiasts. As the crypto population grows exponentially, the demand for reliable and feature-rich crypto exchange platforms is on the rise.
The country's advanced IT infrastructure has led to a surge in cryptocurrency app users, and South Koreans are comfortable with electronic micropayments. The economic conditions, including a prosperous yet youth-unemployment-stricken economy, make cryptocurrencies an attractive investment option for many young South Koreans.
Emerging exchanges are introducing innovative solutions in decentralized finance (DeFi) and non-fungible tokens (NFTs). If you are considering entering this exciting market or exploring crypto business opportunities in South Korea, understanding the top-performing exchanges and market trends is important.
Is Cryptocurrency Legal in South Korea?
Cryptocurrencies, including Bitcoin, are legal in South Korea, with strict regulations on exchanges. There are no explicit bans on owning or trading digital assets, allowing citizens to engage in cryptocurrency activities on licensed platforms.
South Korea has introduced new regulations to oversee virtual assets, with a focus on safeguarding investors and managing cryptocurrency markets.
Key Points
Regulatory Framework: Cryptocurrencies, including Bitcoin, fall under Anti-Money Laundering (AML) and securities regulations enforced by the Financial Securities Commission (FSC). Crypto service providers must comply with reporting guidelines, primarily based on guidelines rather than laws.
Taxation: South Korea postpones taxation on crypto investment gains until the implementation of the Digital Asset Basic Act. A 20% tax is applied to crypto gains surpassing $2,100 per year.
Recent Developments: The country restricts the use of anonymous accounts in cryptocurrency trading and imposes strict regulations on local financial institutions involved in crypto transactions. New rules, effective July 2024, aim to protect customers of virtual asset service providers.
Top Trusted Cryptocurrency Exchanges Operating in South Korea
Numerous exchanges operate in South Korea; the ones listed below are considered trustworthy. Together, these exchanges constitute 90% of the crypto-asset trading volumes in South Korea.
- Upbit
- Bithumb
- Coinone
- Korbit
- Binance
Upbit
Founded in 2017 by Dunamu Inc., Upbit quickly established itself as the largest cryptocurrency exchange in South Korea, with a user base of approximately 8.9 million and a trading volume exceeding $2.6 billion.
Upbit maintains its dominance despite stringent regulations from the Korean government.
Operating under the umbrella of Korean tech giant Kakao, Upbit has significantly contributed to the Korean Blockchain ecosystem.
Well known for its extensive selection of cryptocurrencies, user-friendly interface, and stringent security measures, it operates under a maker-taker fee model and supports deposits and withdrawals of more than 40 fiat and cryptocurrencies.
Since March 2018, it has invested $50 million in Blockchain startups through its investment arm, Dunamu & Partners, supporting over 25 projects.
Expecting to allocate an additional $30 million to Fintech and content creation-related Blockchain ventures, Upbit continues to play a pivotal role in fostering innovation.
Kakao Group, a major shareholder in Dunamu, further reinforces the exchange's position in the South Korean market.
| Pros |
Cons |
|
✔️ High liquidity
✔️ Low trading fees
✔️ Suitable for beginners
✔️ Helpful customer support
✔️ Secure platform with robust security measures
✔️ Wide range of features
✔️ Over 200 supported assets
✔️ User-friendly interface
✔️ Mobile applications with advanced functionality
✔️ Licensed and operates legally within the South Korean field
|
❌ Not available for U.S. residents
❌ Limited fiat currency support
❌ Slow customer support at times
❌ Focused on the Asian market
❌ No leveraged trading
❌ No demo accounts or training programs
|
Bithumb
Founded in 2013 as Xcoin and later rebranded in 2015, Bithumb, one of South Korea's largest cryptocurrency exchanges, actively provides a trusted and innovative digital finance platform.
Serving over 21 countries globally, the exchange achieves a daily trading volume of $205 million, supporting more than 170 cryptocurrencies. Bithumb faced challenges in 2018 and 2019 but has since rebounded.
With over 8 million users, it endured several hacks. The 2018 layoff, cutting staff from 310 to 150, was unrelated to the hacks but driven by falling cryptocurrency prices. In 2018, Bithumb reported a $170 million loss, a sharp contrast to the $470 million profit in 2017.
Looking forward to 2023, Bithumb now supports withdrawal and deposit services for XRP, BCH, and EOS. The focus is on global expansion through Bithumb Global, which already operates in 10 countries. The goal is to provide a secure global service and extend cryptocurrency access worldwide.
| Pros |
Cons |
|
✔️ High liquidity
✔️ User-friendly interface
✔️ Decent customer support
✔️ Strong security measures
✔️ Multi-language support
✔️ Charge-free deposit methods
✔️ Wide variety of cryptocurrencies
✔️ Advanced digital financial services
✔️ Staking, mining, and investment opportunities
|
❌ Limited fiat currency support (only Korean Won)
❌ No margin or futures trading
❌ Slow verification processes
❌ Limited base currencies (KRW and BTC)
❌ Restricted to South Korean markets primarily
|
Coinone
Established in 2014, Coinone is a major South Korean cryptocurrency exchange founded by CEO Chan Myung Hun. Initially Bitcoin-focused, it expanded to include various cryptocurrencies.
Currently the second-largest exchange in South Korea, it introduced Coinone Blocks, a physical exchange that ceased operations in July 2019. Coinone uses the South Korean Won (KRW) as its fiat currency, charges no fees for deposits, and has low commission fees.
In 2022, Coinone plans to expand its presence in Asia, with a focus on Southeast Asia, particularly Indonesia, Hong Kong, and Singapore. Despite being one of South Korea's largest crypto exchanges, Coinone's move is driven by stringent government regulations in its home country.
Coinone Transfer, a subsidiary of Coinone, operates as a payments business. They introduced Cross, South Korea's first Blockchain remittance mobile app, leveraging Ripple's xCurrent for rapid cross-border payments.
This innovative app enables unbanked individuals to transfer funds from South Korea to Thailand or the Philippines at a minimal cost. Coinone has already established collaborations with Siam Commercial Bank (SCB) in Thailand and Cebuana Lhuillier in the Philippines.
Moreover, Cross users can conveniently send funds to any Thai bank account through the PromptPay app, powered by Mastercard. As of October 2023, it supports the IQ token and explores new technologies like Coinone Core for building crypto.
| Pros |
Cons |
|
✔️ Supports over 190 virtual currencies
✔️ Customized Trading System
✔️ Robust security measures for user payments and data protection
✔️ User-Friendly Mobile App
✔️ Staking Programs
✔️ Lending Capabilities
✔️ Margin Trading
|
❌ Limited Fiat Support
❌ No Referral Program
❌ Lack of Demo Accounts
|
Korbit
Korbit, Korea's first cryptocurrency exchange and the fourth largest in the country, is currently in high demand for acquisition. EA, Disney, and Tencent are competing for ownership.
Although there might be confusion regarding the name, as Korbit Technologies Inc. focuses on artificial intelligence solutions rather than cryptocurrency exchanges, the original Korbit exchange remains operational and relevant in the region.
NXC (Nexon) acquired Korbit in 2017 for $150 million and later added Bitstamp in 2018. The gaming-focused NXC's acquisition will significantly benefit Korbit and Bitstamp.
If Tencent wins the bid, it will own two major crypto exchanges, boosting its impressive Blockchain operations.
Korbit received top grades for information security and AML during due diligence by the Ministry of Science and ICT. They also reintroduced Korean won deposit services and partnered with Shinhan Bank.
| Pros |
Cons |
|
✔️ Multiple cryptocurrencies are available for trading
✔️ Fast and functional trading terminal
✔️ Good optimization and high speed of trades
✔️ Profitable investments in Bitcoin and Ethereum
✔️ Multilingual customer support
✔️ Multichannel call center and operational support service
✔️ Low commissions and fees
✔️ Established reputation in South Korea
✔️ Fiat-to-crypto trading with South Korean Won (KRW)
|
❌ Limited to South Korean markets primarily
❌ Only KRW is offered as fiat currency
❌ No mobile application
❌ No margin leverage
❌ Limited trading levels and associated fee structure
|
Binance
In 2017, Binance founded a prominent cryptocurrency exchange that offers a wide range of services to its users. Binance has re-entered the South Korean market by acquiring a substantial stake in the local cryptocurrency exchange GOPAX.
The move involves Binance purchasing a 41.2% stake in GOPAX, a key player in the South Korean crypto exchange scene.
This strategic investment is a part of Binance's Industry Recovery Initiative, which is designed to support companies affected by market events and to promote a sustainable environment for cryptocurrency investments and trading in South Korea.
Binance is renowned for its extensive selection of cryptocurrencies, including Bitcoin, Ethereum, and its proprietary coin, BNB. The platform provides users with various trading options, such as Spot, Margin, and Futures markets, along with features like Binance P2P, Binance Earn, and Binance Launchpad.
Users can engage in buying, selling, trading, staking, loaning NFTs, and earning interest on over 180 cryptocurrencies. Regulatory challenges have been encountered by Binance in some countries, including the U.S., where the SEC has charged it for unregistered offerings and sales of certain products.
If You want to build a Binance-like exchange, developers need to focus on key features such as a user-friendly interface, a robust trading engine, secure wallet solutions, and advanced trading tools.
| Pros |
Cons |
|
✔️ Low Trading Fees
✔️ Wide Range of Cryptocurrencies
✔️ Advanced Trading Tools
✔️ Passive Income Opportunities
✔️ Community Support
|
❌ Complexity
❌ Regulatory Issues
❌ Limited Availability
❌ Payment Service Challenges
❌ Security Concerns
|
Bonus - ProBit Korea
ProBit Korea, a South Korean cryptocurrency exchange, offers a secure platform for trading various virtual assets such as Bitcoin, Ethereum, Ripple, and more. Ranked 28th in security by Hacken, it boasts strong security features.
The CEO, a former partner at Kim & Chang, South Korea's largest law firm, leads the exchange with KRW deposits, Probit Korea is among the top 70 on CMC, offering over 100 markets and growing.
As an IEO exchange, they have conducted over 80 IEOs, attracting projects for their fair practices. ProBit Global, associated with ProBit Korea, facilitates trading and purchasing of Bitcoin, Ethereum, and over 800 altcoins across more than 1000 markets.
Probit Exchange has 300,000 monthly users, 2.5 million monthly web views, and global outreach in 8 languages. Stake 100,000 PROB for 100% fee returns and earn up to 30% in fees for referring friends to ProBit.
| Pros |
Cons |
|
✔️ Low Trading Fees
✔️ Optional KYC
✔️ Android app available
✔️ Discounts for PROB Tokens
✔️ Ease of Navigation
✔️ Initial Exchange Offerings (IEOs)
✔️ High Transaction Speed - 1.5 million transactions per second
✔️ Large Selection of Altcoins - Over 300 cryptocurrencies
|
❌ Fiat Trading Restrictions
❌ Limited Customer Support
❌ Lack of Futures Trading
❌Restricted Access to Some Countries
❌ Poorer User Experience Outside of Korea
❌ Lower Volumes and Liquidity
❌ No Leveraged Tokens
❌ Limited Transparency in Security
|
Are you Excited About Launching your Crypto Exchange in South Korea?
If you're considering entering the crypto market in Korea, note that it's still in its early stages, with only a portion of the population aware of cryptocurrencies. Launching a user-friendly crypto exchange platform with a diverse range of assets could quickly reach a substantial portion of the market.
To establish a new crypto market in Korea, focus on attracting users to invest in cryptocurrencies. For guidance on starting a crypto exchange in South Korea, this article provides valuable information on regulations.
Connect with industry leaders like WeAlwin Technologies to enhance your efforts if you have a clear vision and plan for the crypto exchange's development and launch.
Future Outlook
South Korea maintains its ban on crypto exchange-traded funds (ETFs) despite the U.S. approving spot Bitcoin ETFs.
The Financial Services Commission (FSC), South Korea's top financial regulator, cites investor protection and financial market stability as reasons for the decision.
The country is implementing a two-part crypto regulation framework, with the first part scheduled to come into effect in July 2024. South Korea does not recognize cryptocurrencies as financial assets and has banned financial institutions from investing in them since 2017.
The legal status of cryptocurrencies in the country may be influenced by market conditions, with potential changes if significant shifts occur, despite the FSC stating that the approval of spot Bitcoin ETFs in the U.S. will not lead to the lifting of the ban on crypto ETFs in South Korea.
Conclusion
Cryptocurrency exchange software development Solutions is thriving in South Korea's growing crypto scene, driven by increased interest and adoption—the country's advanced IT infrastructure and comfort with electronic micropayments fuel demand for reliable crypto exchange platforms.
Cryptocurrencies, including Bitcoin, are legal in South Korea despite strict regulations. This presents opportunities for young South Koreans in a prosperous yet youth-unemployment-stricken economy.
New exchanges are reshaping the market with innovative solutions in DeFi and NFTs, making it essential to understand top-performing exchanges and market trends for those entering the crypto space.
Exploring possibilities in this burgeoning industry holds potential for those willing to delve into South Korea's cryptocurrency exchanges.
