Upbit strengthens leadership in South Korea’s crypto scene
Amid controversial efforts by regulators to keep cryptocurrency trading in order, Upbit still managed to consolidate its market leadership.
Upbit is the largest cryptocurrency exchange in South Korea
Upbit remains the largest South Korean crypto exchange by far: it has the highest user and transaction count, as well as the most assets held in the country.
According to People’s Power Party representative Yoon Do-hyun, a member of the National Policy Committee, Upbit has $4.5 million (~£3.2 million) on its accounts. This is four times more than the three local competitors – Bithumb, Coinone and Korbit together. Bithumb ranks second in the country with 1.3 trillion won (~£812.5 million). Total deposits made at Coinone and Korbit are 248 billion won (~£155 million) and 69 billion won (~£43 million), respectively.
The total number of Upbit users as of July 2021 was 4.7 million. That’s 3.6 times more than Bithumb, 8.6 times more than Coinone, and 47 times more than Korbit.
The data shows that Upbit and three of the aforementioned competitors have attracted millions of new customers this year. Between April and July, the number of new users registered on Upbit was 1.8 million. Bithumb attracted 450,000 new clients, while Coinone and Korbit attracted 170,000 and 45,000 users respectively during the same period.
Upbit’s own solution for “travel rule”
Upbit said it would develop in its own way and abide by the “travel rule”. According to this rule, virtual asset providers must create a system capable of verifying the identity of senders for international transfers by 25th March, 2022.
This was initially supposed to be a joint solution developed by Upbit, Bithumb, Coinone and Korbit. But on 18th August, the company withdrew from the development, saying it would create its own solution with the help of Lambda256, its blockchain technology research division.
The data released by the National Policy Committee also showed that an increasing number of Korean teenagers are investing in virtual coins. As of July, a total of 4 billion won (~£2.5 million) had been deposited by teenage investors on Korea’s four major cryptocurrency exchanges. Between April and July, teens sold and bought coins about 1.9 million times. On average, they made transactions 17 times a month.
Upbit is showing great success in the South Korean market. It has become the largest and best-known platform in the region and continues to gain popularity. Let’s see where the market goes.
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