South Korean industry officials are once again raising concerns about the dominance of the crypto exchange Upbit in the local market. According to data from the Financial Supervisory Service (FSS), Upbit accounted for 71.6% of total domestic crypto trading volumes in the first half of 2025. This has led to fears that smaller competitors are facing extinction as their market presence dwindles.
The platform’s operator, Dunamu, is currently in talks for a merger with Naver, South Korea’s largest internet company. The potential deal has raised questions about the impact it could have on market competition. In the first half of the year, customers executed transactions worth 833 trillion won ($642 billion) on Upbit’s platform, further solidifying its market dominance.
In comparison, Upbit’s closest rival, Bithumb, accounted for 25.8% of the market with 300 trillion won ($223 billion) in trading volumes. Despite efforts by Bithumb to regain market share, Upbit’s lead remains significant. Smaller exchanges like Coinone, Korbit, and GOPAX reported negligible trading volumes, with their market share being deemed insignificant.
The FSS data also revealed that Upbit’s average daily trading volume was 4.6 trillion won ($3.36 billion), while Bithumb’s was 1.6 trillion won ($1.2 billion). In contrast, smaller exchanges struggled to compete, with daily volumes as low as 10 billion won ($7.7 million) for GOPAX. This disparity underscores the challenges faced by smaller platforms in the current market landscape.
User numbers tell a similar story, with Upbit and Bithumb commanding the majority of users. The combined user base of smaller exchanges accounted for just 10% of the total 10.17 million users. Industry insiders predict that this gap may widen further, especially if the Naver merger and Bithumb’s NASDAQ listing proceed as planned.
Concerns have been raised about the risk of Upbit monopolizing listing policies and fee structures, potentially posing systemic risks to the market. Financial regulators are urged to ensure fair competition to prevent investors from having limited options. Lawmakers have also warned about the risk of Upbit becoming a monopoly, with the platform’s dominance peaking at over 80% in April last year.
Despite efforts by smaller exchanges to compete, Upbit’s market dominance remains a challenge for the industry. As the crypto market continues to evolve, regulatory measures may be necessary to ensure a level playing field for all participants. The future of South Korea’s crypto market will depend on how regulators address the growing dominance of major players like Upbit.