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South Korea crypto exchange profits fall 78% in H1 amid trading slump
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Operating profits at South Korean cryptocurrency exchanges fell 78% in the first half of 2026 as trading activity, market values and customer deposits declined. The Korea Financial Intelligence Unit reported the contraction, comparing the period with the previous six months. The drop highlights pressure on domestic virtual-asset businesses amid changing investor preferences.
Average daily trading volume fell 44%, market capitalization dropped 33%, and won-denominated deposits declined 35%. Exchange sales also decreased 41%, even as accounts eligible to trade rose 0.4%. The declines show that more eligible accounts did not translate into stronger participation or revenue.
KoFIU’s survey covered 26 registered virtual-asset service providers: 17 exchange operators and nine custody or wallet providers. The review spanned Jan. 1 through June 30. This scope captured conditions across trading, custody and wallet businesses within South Korea’s registered virtual-asset market.
The figures came amid signs that South Korean retail investors were shifting attention from crypto to equities. In May, the crypto held by Korean investors fell 50.2% year over year to 60.6 trillion won, or $41.4 billion. ChosunBiz linked the decline to capital moving toward stocks.
A Cointelegraph analysis in July found that average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax fell about 89% year over year during comparable seven-day periods. By contrast, the KOSPI, South Korea’s benchmark stock index, more than doubled over the 12 months to July 22. The contrasting trends underscore the migration of investor interest.
Cointelegraph sought comment from Bithumb and Upbit operator Dunamu, but no responses were reported. Taken together, the data show how sentiment toward equities coincided with contracting crypto activity, although they do not establish a complete cause for the profit fall. The near-term outlook will depend on whether volumes, deposits and valuations recover; no timing was detailed.
