H1 2026 Sees 78% Plunge in Operating Profits for South Korean Cryptocurrency Exchanges
Operating profits at cryptocurrency exchanges in South Korea plummeted 78% during the first six months of 2026, driven by decreases in trading volumes, market cap, and customer deposit levels.
Cryptocurrency exchanges operating in South Korea experienced a dramatic 78% decline in operating profits throughout the first half of 2026, as trading activity diminished alongside decreases in market valuations and customer deposit levels, recent government statistics reveal.
In an announcement made Thursday, the Korea Financial Intelligence Unit (KoFIU) reported that the average daily trading volume at the country's domestic virtual asset exchanges decreased by 44% compared to the preceding six-month period, with market capitalization experiencing a 33% drop and won-denominated deposits falling by 35%. Revenue generated by exchanges contracted by 41% during the identical timeframe, despite a modest 0.4% increase in the total number of trading-eligible accounts.
The KoFIU survey encompassed 26 registered virtual asset service providers, which included 17 exchange operators along with nine custody and wallet providers, examining activity that occurred between Jan. 1 and June 30.
These statistics emerge at a time when indicators suggest that retail investors in South Korea have been redirecting their focus away from cryptocurrency and toward the nation's stock market.
During May, the total value of cryptocurrency holdings among South Korean investors decreased by 50.2% to reach 60.6 trillion won ($41.4 billion) over approximately a year's time. Korean publication ChosunBiz attributed the decrease to capital flows moving in the direction of stocks.
An analysis conducted by Cointelegraph in July additionally discovered that the combined average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax had experienced approximately an 89% year-over-year decline when comparing similar seven-day periods, whereas the KOSPI, which serves as South Korea's benchmark stock index, had more than doubled throughout the 12-month period ending July 22.
Cointelegraph contacted Bithumb and Upbit operator Dunamu for comment.