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South Korea crypto exchange profits fall 78% in H1 amid trading slump
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South Korean crypto exchange operating profits fell 78% in the first half of 2026. Weaker trading, lower valuations and reduced customer deposits drove the decline. The result signals a sharp cooling in the country’s digital-asset market.
Korea Financial Intelligence Unit (KoFIU) data released Thursday showed average daily trading volume fell 44% from the previous six months. Market capitalization dropped 33%, won-denominated deposits fell 35%, and exchange sales declined 41%. Eligible trading accounts rose slightly, by 0.4%.
KoFIU surveyed 26 registered virtual-asset providers from Jan. 1 through June 30. They comprised 17 exchange operators and nine custody and wallet providers. The survey covered much of the country’s regulated crypto sector.
The slump coincides with signs that South Korean retail investors are shifting from crypto to stocks. In May, crypto holdings fell 50.2% year over year to 60.6 trillion won ($41.4 billion). ChosunBiz linked the decline to capital moving toward equities.
A Cointelegraph analysis in July found average daily volume across Upbit, Bithumb, Coinone, Korbit and Gopax fell about 89% year over year in comparable seven-day periods. Meanwhile, the KOSPI more than doubled over the 12 months through July 22. The divergence highlights investors’ shift toward equities.
The figures suggest retail interest shifted toward equities rather than weakening across all financial markets. Lower turnover, valuations and deposits reduce exchange revenue and may prompt cost or strategy changes. The slight rise in eligible accounts, however, shows the potential customer base remained broadly stable.
Government and market data point to continued pressure if the slump persists, although they cover only the first half of 2026. Cointelegraph sought comment from Bithumb and Dunamu, Upbit’s operator, but reported none. Future volumes, deposits and profits will show whether exchanges adapt as investor preferences change.
