South Korean Crypto Exchanges Scrap for Survival as Upbit Dominance Wanes

cryptonews.com:

A “tectonic rift” is threatening to separate the South Korean crypto exchange Upbit from its rivals, as tensions begin to fray between domestic platforms.

The newspaper Daehan Kyungjae reported that Upbit’s market share has dropped sharply in recent months, falling from 93% in June this year to under 62% on December 17.

Upbit’s biggest rival Bithumb has been the biggest winner, increasing its market share from under 6% in June to almost 36.5% in December.

More modest (but still statistically significant gains) were recorded by all three of Upbit’s other major rivals: Korbit, Coinone, and Gopax.

All five platforms are members of the Digital Asset Exchange Association (DAXA), the industry’s most important self-regulating body.

The DAXA members are the only exchanges in the country with the operating permits required to offer fiat won trading.

In a seemingly desperate bid for survival, Upbit’s rivals have been offering a range of services intended to boost their competitiveness.

These include commission-free trading. At present, Upbit is the only DAXA member that charges commission on crypto trades.

Analysts have called the move an act of desperation. The same media outlet noted that commission fees are “the main source of revenue” for domestic exchanges.

Bithumb initially offered commission-free trading on selected coins in August.

But in October, the firm extended the offer to its entire portfolio “until further notice.”