South Korean authorities are investigating local cryptocurrency exchanges for potential anti-monopoly breaches, fueled by Binance’s overarching dominance in the market. Binance’s trading volume is 22 times that of all South Korean exchanges combined, including Upbit, which holds an 80% market share in the region.
This disparity in volume has raised concerns about fair competition and potential regulatory gaps in the South Korean cryptocurrency market. Authorities are now scrutinizing local exchanges to ensure compliance with anti-monopoly laws and to maintain a level playing field for all market participants.
Binance’s Trading Volume in South Korea
A recent analysis by “burakkesmeci” on CryptoQuant revealed the extent of Binance’s dominance. Over the past six months, Binance’s trading volume has consistently dwarfed that of all Korean exchanges combined.
- In May, Binance’s volume was $514 billion, while Korean exchanges totaled $23 billion.
- In June, Binance recorded $337 billion, compared to $115 billion for Korean exchanges.
- This trend continued in July and August, with Binance at $415 billion and $361 billion, respectively, while Korean exchanges reached only $12.80 billion and $12.09 billion.
- In September and October, Binance’s volume was $230 billion and $310 billion, while Korean exchanges totaled $7.82 billion and $17.78 billion.
Bitcoin’s Price Surge in South Korea
On the other hand, the price of Bitcoin (BTC) surpassed 120 million won ($85,500) at local exchanges for the first time, as per a report on Wednesday by Asia News Network.
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The rallying market is expected to attract significant volume in exchanges as well. While Bitcoin traded at 127 million won on Upbit, similar prices were seen on other exchanges.
Korean Exchanges Being Investigated
In September, South Korea’s Financial Supervisory Service (FSS) announced an investigation into local crypto exchanges to inspect for illicit activities. This followed the implementation of the Virtual Asset Users Protection Act in July.
In the announcement, The FSS aims to “establish market order” and ensure fair practices within the cryptocurrency market. Five crypto exchanges and one wallet service provider are currently under investigation.
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