Korean media: 97% of the Korean exchanges are on the verge of bankruptcy, and the project side seeks overseas currency

According to local media reports in South Korea, the vast majority of cryptocurrency exchanges in the country are on the verge of bankruptcy due to low transaction volume:

“Only five or six Korean exchanges are among the top 100 in the world. It is no exaggeration to say that 97% of Korean exchanges face the risk of bankruptcy due to the small volume of transactions.”

Cryptocurrency

Although the report did not provide detailed data support, at least one cryptocurrency exchange in South Korea this year has been closed due to the decline in trading volume: a representative of Coinnest revealed that its cessation of operation is "a natural consequence of the decline in trading volume." The representative also mentioned “regulatory issues and business decisions”.

The Korean exchange has insufficient liquidity, and the project party seeks overseas currency.

In addition, the low trading volume of the Korea Exchange has led to an increasing number of domestic cryptocurrency startups seeking to trade on overseas exchanges, including the US and Singapore. It is reported that the overseas currency market has matured: the report also pointed out that Overseas cryptocurrency exchanges have begun to open the Korean won market to attract Korean cryptocurrency projects."

Currently, both Binance Labs and BW.com have shown great interest in attracting these Korean projects: BW.com plans to open the Korean won market by the end of this month to attract cryptocurrency investors in the country.

Two years brought great changes

It is reported that the factors leading to overseas currency exchange are not only the liquidity problem of the Korean exchange, but the country's cryptocurrency exchange is also facing an increasingly severe market environment. For example, domestic investors cannot directly remit Korean won on the exchange.

In addition, in addition to the four large transactions, there are 200 smaller exchanges that “cannot open real-name virtual accounts”, which makes cryptocurrency holders unable to obtain investor protection.

Compared with two years ago, the Korean cryptocurrency market has undergone major changes. Part of the reason is the country’s strict control over the industry.

As of December 2017, it is estimated that 20% of the world's bitcoin trading volume comes from South Korea; at that time, the Korean people were caught in cryptocurrency fanaticism, so that South Korean Prime Minister Lee Nak-yeon called the bitcoin transaction "a serious morbid phenomenon. ".

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

The first debate of the Republican primary ended. Which candidates are friendly to cryptocurrencies?

The first debate of eight Republican presidential candidates in the United States ended on Wednesday evening (August ...

Blockchain

Babbitt Column | From Central Bank to Digital Currency Exchange: A Typical Case of Banking Sinking

Author: Sun vice president As the author mentioned in the previous article, the once-populated bottom-level public ch...

Blockchain

Circle stripped Poloniex, its valuation plummeted 80%

Circle is a world-renowned blockchain startup with investors including Goldman Sachs, IDG Capital, Bitcoin and hedge ...

Blockchain

Simultaneously addressing the pressing issues of DEX and CEX, the company received a $ 40 million investment from Sequoia and Intel

Starkware, an Israeli startup, believes that it can solve two of the most pressing issues in crypto trading-the inher...

Blockchain

Interview with BitMax.io Cao Jing: Compliance, Localization and Traffic Integration, Exchange Status and Future

On October 19th, at the 1st anniversary of the BitMax.io exchange, Jingwei China Partner Harry, Sequoia Capital Partn...

Blockchain

The original market maker is not "Zhuang"? What is the significance of the coin safety ball recruitment market?

On September 30th, the company announced that it has launched the Global Markets Program and will recruit Market Make...