News linked to both this project and an event.
TechFlow News, August 1, according to South Korean media NexBlock, South Korea's virtual asset market trading volume continues to shrink, and the competitive landscape among the five major KRW exchanges is changing. During the market downturn, funds are further concentrating on platforms with leading liquidity, while small and medium-sized exchanges are seeking breakthroughs through cooperation with securities companies, institutional market positioning, and business restructuring. The focus of future competition will no longer be just trading volume, but stablecoin liquidity, traditional financial cooperation, institutional market expansion, and regulatory compliance capabilities. Data shows that in the first half of this year, South Korea's five major KRW exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) accumulated trading volume of about $366.58 billion, a year-on-year decrease of 54.6%. From July 1 to 27, the five major exchanges accumulated trading volume of about 17.34 trillion KRW, a decrease of 16.9% compared to the same period last month. Among them, Upbit's trading volume was about 11.69 trillion KRW; although down 10%, its market share rose from 62.3% to 67.4%. Bithumb's trading volume dropped to 4.71 trillion KRW, with its share decreasing from 30.7% to 27.1%, expanding the gap between the two to 40.3 percentage points.
Mirae Asset Consulting 已取得韩国最早加密货币交易所 Korbit 的多数控制权，持股比例升至 97.15%，交易总额约 1414 亿韩元，按汇率折合约 9500 万至 1.02 亿美元。 韩国公平交易委员会已于 2026 年 7 月 9 日批准该交易，认为收购不太可能限制竞争，并提及 Korbit 2025 年在韩国加密交易市场约 0.5%的份额。Mirae Asset 表示，Korbit 运营实体、用户存款和核心交易服务暂时保持不变，客户资产将按现有保护规则隔离保管。 Korbit 将更名为 Digital X。Mirae Asset 创始人兼全球战略官 Park Hyeon-joo 表示，Digital X 是 Mirae Asset 3.0 战略的核心，计划在同一平台连接现实世界资产代币化、证券型代币发行、稳定币、传统证券和数字资产。 Mirae Asset 表示，Digital X 并非以交易量超越 Upbit 或 Bithumb 为目标，而是定位为基础设施平台，将其证券和资产管理背景与 Korbit 的数字资产运营结合。Digital X 目前将基于 Korbit 现有牌照和用户基础运营。
Odaily Odaily: Mirae Asset has completed the acquisition of a 97.15% stake in Korbit, one of South Korea's earliest cryptocurrency exchanges, and rebranded it as Digital X. The company plans to develop Digital X into a smart investment platform, integrating real-world assets, security tokens, stablecoins, traditional assets, and digital assets within the same ecosystem. Mirae Asset stated that it will not directly compete with dominant exchanges like Upbit and Bithumb. Instead, it will focus on investor education, research, strict compliance standards, and institutional-grade infrastructure.
According to BLOCKMEDIA, South Korean police are investigating a case of political interference in crypto market competition. The former aide of independent lawmaker Kim Byung-ki was alleged to have pressured the Financial Supervisory Service (FSS) in February last year, forcing Upbit to terminate fee reduction campaigns for $USDC and $USDT to alleviate the financial pressure suffered by competitor Bithumb due to launching zero-fee promotions. The suspicion lies in the fact that the aide secured an informal advisory position at Bithumb several months after the interference occurred, while the lawmaker's son was also hired as an intern by the exchange. Bithumb denied knowledge of any political interference, insisting that the fee adjustment was an independent business decision.
According to The Block, South Korea’s Personal Information Protection Commission fined cryptocurrency exchange Bithumb 210 million Korean won (approximately USD 136,000) for transferring users’ personal information to overseas platforms without obtaining adequate user consent.
the Public Crime Investigation Division of the Seoul Metropolitan Police Agency in South Korea has registered Bithumb CEO Lee Jae-won as a suspect in a bribery case, which is linked to independent lawmaker Kim Byung-kee. According to a former assistant's testimony, Kim Byung-kee asked Lee Jae-won in November 2024 to arrange jobs for his two sons at Bithumb. They joined the company two months later and worked for about six months. Kim Byung-kee also previously requested Bithumb to hire one of his assistants, who has been working at the company since September 2025. (The Block)
Odaily News: South Korean police recently raided cryptocurrency exchange Bithumb to investigate allegations that independent lawmaker Kim Byung-gi used his influence to secure a job for his son. According to reports, Kim’s son joined Bithumb in January 2025 and worked there for about six months. Police are investigating whether external pressure or preferential treatment was involved in the hiring process. Additionally, the case has also implicated Dunamu, the operator of South Korea’s largest crypto exchange Upbit, with the investigation scope expanding from simple hiring issues to potential abuse of power and conflicts of interest.Investigators noted that during his tenure on the National Assembly's Political Affairs Committee, Kim Byung-gi raised multiple inquiries against Dunamu during committee meetings, sparking external speculation that he may have been seeking benefits for the company where his son was employed.It is understood that police have previously questioned executives from several cryptocurrency firms and have conducted search and seizure operations at Bithumb’s headquarters and Bithumb Financial Tower. Kim Byung-gi himself is under investigation on 13 charges, including allegations related to job placements, bribery for nominations, and requests concerning university transfers. He has stated that he believes he will ultimately be able to prove his innocence.Notably, Bithumb has been facing sustained regulatory pressure recently. In March this year, South Korea’s financial regulator fined Bithumb approximately $24.5 million for violations related to KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, and issued a six-month partial business suspension order. However, the Seoul court temporarily suspended the penalty in late April, and the relevant legal proceedings are still ongoing. (Cointelegraph)
The Korea Digital Asset Exchange Alliance (DAXA) has introduced new compliance standards requiring local cryptocurrency exchanges to invalidate API keys suspected of being improperly shared by users, thereby strengthening oversight of automated trading. The Financial Supervisory Service (FSS) stated that automated trading currently accounts for approximately 30% of trading volume in Korea’s cryptocurrency market. Under the new rules, exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax will enhance API monitoring, issue warnings upon detecting suspicious sharing behavior, require users to re-authenticate, and implement an IP allowlist mechanism to restrict API access to authorized addresses only.
According to Digital Asset, domestic virtual asset trading volume in South Korea has fallen to approximately 8% of KOSPI trading volume—less than one-tenth. Media statistics show that, as of May 26, the ratio of trading volume on Korean won-based exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) to KOSPI trading volume stood at just 8%. The report notes that South Korea’s virtual asset market has been weakening continuously since the second half of 2025; it declined sharply following a large-scale futures liquidation event in October 2025, while the KOSPI strengthened amid a semiconductor upcycle and supportive government policies. Additionally, according to CryptoQuant data, the Bitcoin Korea Premium indicator has been negative for most of the time since March, reflecting weak buying demand in the Korean market.
Odaily Planet Daily reported that the National Tax Service of South Korea is building an artificial intelligence system costing approximately $2.2 million to monitor cryptocurrency transactions and pursue tax evaders, with completion expected by the end of 2026. This system will integrate exchange transaction records with blockchain data to identify suspicious transactions such as money laundering, unreported gifts, and offshore tax evasion, and will extend its tracking capabilities to non-custodial wallets. The National Tax Service is coordinating implementation details with five major exchanges, including Upbit and Bithumb, with the final tax guidelines anticipated by the end of 2026. A survey by the Financial Services Commission of South Korea revealed that the country has over 11 million verified crypto investors, although growth has slowed; the growth rate of tradable accounts fell from 25% in the first half of 2024 to 3% in the second half.
According to Odaily, the value of cryptocurrency holdings held by South Korean investors has more than halved over the past year, dropping from 121.8 trillion won at the end of January 2025 to 60.6 trillion won (approximately $41.4 billion) by the end of February 2026.Daily trading volume on the five major exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—fell from $11.6 billion in December 2024 to $3 billion in February 2026. Korean won deposits on these exchanges also decreased from 10.7 trillion won to 7.8 trillion won.Stablecoin holdings declined from 597 million units in December 2024 to 41 million units in February 2026.South Korean regulators plan to implement revised anti-money laundering rules in August, under which crypto transactions involving overseas exchanges or private wallets exceeding 10 million won will be automatically flagged as suspicious. Additionally, a 22% tax on crypto gains is set to take effect on January 1, 2027.
that, according to data submitted by the Bank of Korea to the National Assembly, the total value of crypto assets held by South Korean investors fell from 121.8 trillion won (approximately $83.3 billion) at the end of January 2025 to 60.6 trillion won (approximately $41.4 billion) at the end of February 2026, a decline of over 50% within a year. During the same period, the average daily trading volume on South Korea's top five exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax—dropped from $11.6 billion in December 2024 to $3 billion in February this year. The total Korean won deposits on these exchanges also decreased from 10.7 trillion won to 7.8 trillion won, reflecting that some funds are flowing into the South Korean stock market.However, stablecoin holdings have remained relatively resilient. Data shows that South Korean stablecoin holdings peaked at $597 million in December 2024 before falling to $41 million in February this year, a decline significantly smaller than that of the broader crypto market.Additionally, South Korean regulators plan to implement stricter anti-money laundering rules in August, which will automatically flag as suspicious any transactions involving overseas exchanges or private wallets exceeding 10 million won. The Digital Asset Exchange Alliance (DAXA) has warned that this measure could drive users toward offshore platforms such as Binance.Meanwhile, the South Korean Ministry of Economy and Finance recently confirmed for the first time that a 22% tax rate on crypto gains will officially take effect on January 1, 2027. (Cointelegraph)
According to The Block, South Korean cryptocurrency exchange Bithumb announced it has signed a memorandum of understanding (MOU) with SSI Digital (SSID), the blockchain subsidiary of Vietnam’s largest securities firm, SSI. Under the MOU, the two parties will jointly establish and operate a digital asset exchange in Vietnam, covering areas including wallet and custody systems, security risk management, regulatory compliance, and product development. The agreement was signed in March this year and officially announced today. Bithumb stated that, subject to approval by local regulatory authorities, it may make a strategic investment in SSID’s cryptocurrency exchange project.
: South Korea's crypto industry has expressed strong concerns over proposed amendments to anti-money laundering (AML) regulations, arguing that the rules could impose excessive compliance burdens on Virtual Asset Service Providers (VASPs).According to Yonhap News Agency, the Digital Asset eXchange Alliance (DAXA), representing 27 VASPs including Upbit, Bithumb, Coinone, Korbit, and Gopax, submitted comments opposing the classification of all overseas virtual asset transfers exceeding 10 million won (approximately $6,800) as suspicious transaction reports.DAXA warned that this rule could cause the number of suspicious transaction reports from South Korea's top five exchanges to skyrocket from approximately 63,000 last year to over 5.4 million—an increase of about 85 times—severely impacting the efficiency of actual compliance execution. Furthermore, the industry also opposes a new obligation requiring exchanges to verify the accuracy of customer information, arguing it exceeds the scope of current legal authorization.South Korea's Financial Services Commission (FSC) and Financial Intelligence Unit (FIU) proposed the relevant amendments on March 30, which have now entered a public comment period, with final deliberation expected to be completed in July.Meanwhile, legal disputes between Korean exchanges and regulators over AML penalties continue. Multiple platforms are challenging previous business restrictions and fines through the courts, reflecting an escalating tension between regulatory tightening and the industry's execution capabilities. (Cointelegraph)
According to Yonhap News Agency, the Korea Digital Asset Exchange Alliance (DAXA) submitted its official comments on the draft Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”) to the National Participation Legislative Center of the Ministry of Government Legislation on April 29. The comments reflect the collective views of 27 Virtual Asset Service Providers (VASPs), including the five major exchanges Upbit and Bithumb. DAXA raised objections to two core provisions in the draft revision: First, the proposal to categorize all virtual asset transactions exceeding KRW 10 million as suspicious transactions—mandating compulsory reporting to the Financial Intelligence Unit (FIU). This change is projected to increase the annual number of suspicious transaction reports filed by the five major exchanges from 63,000 to 5.445 million, an 85-fold surge. Second, the draft introduces a new obligation to verify the accuracy of customer information, going beyond existing customer identification requirements—and exceeding the scope of authority granted under the higher-level law. Moreover, penalties for noncompliance are significantly harsher than those applied to other financial sectors. While DAXA supports the legislative intent behind the revision—to strengthen the anti-money laundering (AML) framework—it contends that certain provisions overstep the statutory delegation of authority and impose discriminatory treatment on the virtual asset industry. The draft revision’s public consultation period ends on May 11, with formal adoption expected in July. The relevant provisions will be implemented in phases between August 2026 and 2027.
According to an official announcement, Upbit and Bithumb have stated that member companies of the Korea Digital Asset Exchange Association (DAXA) plan to terminate trading support for DRIFT. The reason for terminating DRIFT trading is that the foundation’s explanatory materials alone are insufficient to alleviate concerns that led to the project’s inclusion on the “Trading Caution List.” Furthermore, after a comprehensive review of all aspects related to the project’s progress, it was determined that the project fails to meet the criteria required to maintain trading support. DRIFT trading (buy/sell) will end on June 1, 2026, at 16:00 KST. Support for DRIFT withdrawals will be terminated on July 1, 2026, at 16:00 KST.
According to SBS Biz, South Korea’s Personal Information Protection Commission has completed on-site inspections of Upbit and Bithumb and is now reviewing whether the two exchanges violated regulations by transmitting users’ personal information when sharing order books with overseas platforms. Results are expected to be announced in the second half of the year. The core of the dispute lies in whether personally identifiable information was transmitted alongside order books during the sharing process. South Korea’s Personal Information Protection Act stipulates that cross-border transfers of personal information require prior user consent; violations may trigger sanctions. Currently, Upbit shares its order book with Upbit APAC and Tether’s markets, while Bithumb previously shared its order book with the Australian exchange Stellar. Meanwhile, Bithumb is also engaged in a legal battle with financial regulators over alleged violations of the Act on Special Cases Concerning the Settlement of Financial Transactions. A court ruling on the validity of certain business suspension orders against Bithumb is imminent.
According to Yonhap News, the Seoul Administrative Court’s Administrative Division No. 2 ruled on April 30 to accept Bithumb’s application to suspend enforcement of a partial business suspension order issued against it by South Korea’s Financial Intelligence Unit (FIU). The effect of this partial suspension order will thus be stayed until the court issues its final judgment in this case. Previously, in March this year, the FIU imposed a severe penalty on Bithumb—six months of partial business suspension and a fine of KRW 36.8 billion—citing 6.65 million violations by Bithumb of obligations stipulated under South Korea’s Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”). The suspended operations specifically involve external virtual asset transfers (i.e., deposits and withdrawals) for new customers. This marks the harshest penalty ever levied against a Korean won-based cryptocurrency exchange operating in South Korea. The penalty was originally scheduled to take effect on March 27. However, Bithumb filed an administrative lawsuit on March 23 and simultaneously applied for a stay of enforcement, thereby temporarily halting the penalty’s effect. The court’s formal acceptance of the application means that the sanctions will remain suspended until the final ruling is rendered in this case.
Circle CEO Jeremy Allaire stated that Circle has expanded its collaboration with Dunamu—the operator of Upbit—to support the compliant adoption of digital assets, and broadened its partnership with Bithumb to strengthen stablecoin infrastructure and raise market awareness of stablecoins. Allaire noted that South Korea is rapidly advancing regulation for stablecoins and digital assets, and that local cryptocurrency adoption rates are high. During his time in Seoul, he also met with representatives from KakaoGroup, Coinone, Hashed, Shinhan Bank, KB Financial Group, and Woori Bank.
According to News1, following the erroneous payment incident at Bithumb, the Bank of Korea stated that it is necessary to prudently consider introducing a “circuit breaker” mechanism—similar to those in traditional financial markets—into the cryptocurrency market to address extreme market volatility and systemic risks. The Bank of Korea noted that as the cryptocurrency market expands and associated risks increase, existing regulatory measures are insufficient to fully cover potential issues; therefore, it is essential to study the introduction of an automated trading suspension mechanism to enhance market stability and investor protection. Previously, Bithumb triggered market attention after a system failure led to abnormal payments affecting some users’ assets.