Upbit accelerates South Korea into a crypto powerhouse, controlling 80% of national trading amid legal reforms and market enthusiasm.
TakeAway Points:
- Upbit is one of the top five global exchanges and commands over 80% of the trading volume in the Korean cryptocurrency industry.
- Upbit is market dominance may be further cemented by new laws in South Korea that favour well-resourced exchanges with strict standards.
- International companies like Crypto.com are nonetheless interested in breaking into Korea’s thriving but cutthroat cryptocurrency business, despite obstacles.
South Korea: The Global Leader in Crypto
The Korean won has surpassed the US dollar as the most widely used currency for Bitcoin and other cryptocurrency transactions, positioning South Korea as the centre of the global cryptocurrency bull market.
Upbit, a well-known exchange situated in Seoul’s Gangnam neighbourhood and responsible for over 80% of the nation’s cryptocurrency trading volume, is primarily to blame for this spike in activity.
Upbit is among the top five exchanges globally, ranking with industry heavyweights like Coinbase, thanks to its unparalleled dominance in any significant cryptocurrency centre.
Lawmakers in South Korea have expressed concern and disapproval of the exchange due to its considerable deposit contribution to its primary banking partner, underscoring the exchange’s profound influence on the region’s financial environment.
Market dynamics and changes in regulations
The report showed that in 2022, following the collapse of the TerraUSD stablecoin, South Korea passed new laws designed to safeguard investors. These rules mandate that cryptocurrency exchanges boost their reserves, secure insurance for investors, and improve their oversight of questionable transactions.
Even while the goal of these steps is to protect investors, by placing financial and operational costs on Upbit, they can unintentionally strengthen the company’s market dominance by discouraging new competitors and posing challenges to established platforms.
The difficulties faced by foreign exchanges in this dynamic but strictly regulated sector are highlighted by the recent postponement of Crypto.com’s launch in South Korea, which was caused by regulatory communications.
Enthusiasm for Crypto
More than 10% of South Koreans trade on registered exchanges, demonstrating how passionately involved investors are in the cryptocurrency market even in the wake of the TerraUSD fiasco.
Tokens with high risk and big reward are preferred; on Korean exchanges, altcoins account for 80% of trading volume, although this percentage is only about 50% worldwide.
Politicians have already begun to discuss policies to support the cryptocurrency ecosystem, demonstrating how widespread this excitement is. By fostering this vibrant market, Upbit has further cemented its leadership position with its innovative services and strategic alliances.
AKT’s Astounding Ascent on Upbit
According to the report, the value of Akash Network’s token, AKT, has increased as a result of its listing on Upbit, demonstrating the exchange’s impact on market movements. After listing, the price of AKT increased by 50%, demonstrating the major influence of Upbit is platform on token prices.
With Akash Network at the vanguard of this technological progress, this event highlights the growing interest in decentralised cloud computing and artificial intelligence. The focus on decentralised AI and the impending “Akash summit” are indicative of a larger industry trend that uses blockchain technology for creative applications outside of the realm of standard cryptocurrency use cases.
