Korea crypto exchange profits fall 78% as traders pivot to KOSPI — SkimNews
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- South Korean crypto exchanges saw operating profits fall 78% in H1 2026, per Korea Financial Intelligence Unit (KoFIU) data covering 26 registered virtual asset service providers (17 exchanges, 9 custody and wallet operators) from Jan. 1 to June 30.
- KoFIU reported average daily trading volume fell 44% from the prior six months, market capitalization dropped 33%, won-denominated deposits fell 35%, and exchange sales declined 41% — even as eligible trading accounts ticked up 0.4%.
- South Korean retail investors are rotating from crypto into stocks: the value of crypto held by Korean investors fell 50.2% to 60.6 trillion won ($41.4 billion) over roughly a year, per ChosunBiz in May.
- Cointelegraph's July analysis found combined average daily volume across Upbit, Bithumb, Coinone, Korbit, and Gopax fell roughly 89% year-over-year, while the KOSPI benchmark more than doubled over the 12 months to July 22.
- Upbit operator Dunamu and Bithumb were both contacted for comment by Cointelegraph but did not respond before publication.
Why it matters: The 78% operating-profit collapse isn't just a crypto downturn — it reflects a documented capital migration from Korean crypto platforms (deposits down 35%, volume off 44% in six months alone) into the KOSPI, which more than doubled over 12 months. Exchanges are losing the retail allocation war to equities, and shrinking top lines on falling deposits directly hit their operating leverage.
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