- 97% of the county’s domestic exchanges are prone to bankruptcy due to low trading volumes.
- South Korean startups are allegedly seeking to list their coins on overseas exchanges.
Recently, Business Korea reported that the majority of domestic crypto exchanges are at the risk of bankruptcy due to low transaction volumes. The report said:
“Only five or six South Korean exchanges rank among the top 100 in the world in terms of transaction volume. It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions.”
One crypto exchange has already shut down this year due to a dropoff in cryptocurrency trading volume. Coinnest stated that the shutdown was “a natural result of a decrease in trading volume.” The representative also cited “regulatory issues and business decisions.” Moreover, low transaction volumes have allegedly resulted in South Korean startups seeking to list their coins on overseas exchanges. The report claimed that “foreign [cryptocurrency] exchanges have opened the Korean won money market to attract South Korean cryptocurrency projects.”
According to the report, Binance Labs and BW.com have shown interest in attracting these South Korean projects. BW.com is “planning to absorb domestic cryptocurrency investors by opening the won market by the end of this month.” Additionally, “Binance Labs, are directly accelerating Korean blockchain projects to attract Korean startups.” There are several other “tougher domestic cryptocurrency exchange market conditions” that are reportedly adding to the efforts to list abroad, including the fact that “investors cannot make or withdraw deposits in the Korean currency at Korean exchanges.”
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