South Korea’s crypto market is losing momentum as trading volumes fall sharply, even as regulators prepare major changes for digital assets.
The country’s five major crypto exchanges recorded 20.5 trillion won, or about $15.1 billion, in trading volume between Sept. 25 and Oct. 2. The figure was down 19.56% from the previous week, showing a clear slowdown in market activity.
The data, reported by Digital Asset, covered Upbit, Bithumb, Coinone, Digital X and Gopax through 2 p.m. Korea Standard Time on Oct. 2.
Upbit continued to dominate the market with a 64.04% share, although its share fell by 3.3 percentage points. Bithumb ranked second with 26.66%, increasing its share by 1.893 percentage points.
Together, Upbit and Bithumb accounted for more than 90% of trading volume. Coinone held 6.58%, while Digital X and Gopax recorded 2.71% and 0.02%, respectively.
Crypto Market Shows Signs of Weakness
The decline in weekly trading volume comes alongside bigger signs of weakness in South Korea’s crypto industry.
A separate survey by the Korea Financial Intelligence Unit and the Financial Supervisory Service found that average daily exchange trading volume fell 44% during the first half of 2026 compared with the previous six months. The survey covered 26 registered businesses, including 17 crypto exchanges and nine custody or wallet providers.
Domestic crypto market capitalization declined by 33%, or 28.3 trillion won, while Korean won deposits fell 35%, equal to 2.9 trillion won. Exchange revenue also dropped 41%, and operating profit plunged 78%.
The number of accounts eligible to trade crypto increased slightly by 0.4%, suggesting that weaker activity was not caused by a major decline in the number of participating users.
Regulators also found 673 distinct crypto assets, down 5% from the end of 2025. Among 234 assets listed exclusively on individual platforms, 93 had market capitalizations of 100 million won or less. Regulators warned about limited liquidity and sharp price changes in those assets.
Tokenized Securities Rules Move Toward 2027
While crypto trading slows, South Korea is moving ahead with a regulatory framework for tokenized securities.
The Financial Services Commission has proposed rules covering tokenized stocks, bonds, funds, and certain fractional investment securities. Companies issuing tokens while managing customer securities accounts would need at least four billion won in equity capital, along with specific personnel for account management, internal controls and information technology.
The proposal would also require shared ownership records across at least two account management entities and the Korea Securities Depository.
Retail investors face an annual net purchase limit of 100 million won on each over-the-counter exchange.
The first phase is expected to cover institutional money market funds, bonds, unlisted shares through trusts and publicly offered fractional securities. Later stages could expand to publicly offered securities and payments linked to stablecoins.
Public consultation opened on Oct. 2 and will remain open until Nov. 11. Following further approvals, the rules are scheduled to take effect on Feb. 4, 2027.
