Cryptocurrency trading activity across South Korea’s major exchanges declined sharply during the first half of 2026, with total trading volume falling 54.6% compared with the same period last year.
Data from NexBlock showed that South Korea’s five largest won-based cryptocurrency exchanges – Upbit, Bithumb, Coinone, Korbit and Gopax – recorded a combined trading volume of approximately $366.58 billion during the first six months of the year.
The decline highlights weaker activity across one of Asia’s largest retail cryptocurrency markets. Trading activity continued to fall in July, as the five exchanges recorded around 17.34 trillion won in combined volume between July 1 and July 27, down 16.9% from the corresponding period in June.
Despite the broader market slowdown, Upbit increased its dominance in South Korea’s crypto exchange market.
The country’s largest cryptocurrency exchange processed approximately 11.69 trillion won in trading volume during the July period. While its trading activity declined by around 10%, its market share increased from 62.3% to 67.4% as competing exchanges experienced steeper declines.
Bithumb recorded approximately 4.71 trillion won in trading volume during the same period. Its market share dropped from 30.7% to 27.1%, further widening the gap between the country’s two largest crypto exchanges.
The changing market structure indicates that trading liquidity is becoming increasingly concentrated on larger platforms. Exchanges with deeper liquidity may attract more traders by supporting larger transactions and reducing potential price differences between buy and sell orders.
Smaller exchanges, including Coinone, Korbit and Gopax, are facing increased pressure to develop new growth strategies as overall trading activity declines. According to the report, some platforms are exploring partnerships with securities companies, expanding institutional services and restructuring their operations.
Competition among South Korean crypto exchanges could increasingly depend on factors beyond retail trading volumes. Stablecoin services, regulatory compliance, institutional access and partnerships with traditional financial firms may play a larger role in determining the market’s future direction.
The decline in trading activity also comes ahead of South Korea’s planned cryptocurrency tax implementation. The government is expected to introduce a tax on crypto gains from January 1, 2027.
Under the proposed framework, annual cryptocurrency gains exceeding 2.5 million won, or approximately $1,740, will be subject to a combined tax rate of 22%, including national and local taxes.
As South Korea prepares for the new tax framework, crypto exchanges may face additional reporting and compliance requirements. The impact of the policy on trading activity will likely depend on how the rules are implemented and how investors respond to the new tax obligations.
The latest figures show that while overall crypto trading activity is declining, market leadership is becoming more concentrated, with Upbit strengthening its position as smaller exchanges seek new ways to remain competitive.
