South Korea’s Crypto Exchange Upbit: A Profitable Giant Amid Regulatory Hurdles
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Introduction
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South Korea’s cryptocurrency market has been booming in recent years, with more and more people investing in digital currencies. One of the biggest players in this market is Upbit, a South Korean cryptocurrency exchange founded in 2017. Despite facing regulatory issues, Upbit’s parent company, Dunamu, has seen massive earnings growth in 2024, with its operating profit surging by 85.1% to 1.19 trillion won (approximately $1 billion) [1][2].
Background
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Upbit is operated by Dunamu, one of the highest-valued startups in South Korea. The exchange was launched in 2017 and quickly became one of the largest cryptocurrency exchanges in the country. Upbit offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, and Ripple, among others. The exchange also supports Korean won (KRW) as a fiat currency, making it easier for South Korean investors to buy and sell digital assets.
Regulatory Hurdles
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Despite its success, Upbit has faced several regulatory hurdles in recent years. In 2021, the Financial Services Commission (FSC) ordered Upbit to halt its operations for three months due to alleged violations of anti-money laundering (AML) regulations [6]. In response, Dunamu sued the country’s financial regulator, seeking to overturn the sanction and requesting an injunction to temporarily lift the ban [7].
The court eventually granted Dunamu’s request, and Upbit was allowed to resume its operations [7]. However, the regulatory issues did not end there. In 2024, Upbit faced another regulatory hurdle when the Financial Intelligence Unit (FIU) imposed a 30-day ban on the exchange’s operations [6]. Once again, Dunamu challenged the FIU’s disciplinary action, and the court suspended the ban on Upbit’s business [7].
Despite these regulatory hurdles, Upbit has continued to thrive, with its parent company, Dunamu, seeing massive earnings growth in 2024. Chosun Bix reported that Dunamu’s operating profit surged 85.1% to 1.19 trillion won (approximately $1 billion) in 2024 [1][2]. This was due in part to the pro-crypto policies of the United States, which have helped to boost the global cryptocurrency market [1].
Impact on the Crypto Market
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Upbit’s success has had a significant impact on the global cryptocurrency market. As one of the largest cryptocurrency exchanges in South Korea, Upbit has helped to drive the growth of the country’s digital asset market. According to CryptoSlate, South Korea is now the third-largest cryptocurrency market in the world, behind only the United States and Japan [1].
Upbit’s success has also had a positive impact on the prices of many cryptocurrencies. For example, the trading volume of Doland Tremp (TREMP) increased by 8.20% in the last 24 hours, signalling a positive trend in the market [3]. Meanwhile, the price of Neutaro (NTMPI) has also been on the rise, with its market cap and trading volume increasing steadily [5].
Conclusion
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Despite facing regulatory hurdles, Upbit has continued to thrive, with its parent company, Dunamu, seeing massive earnings growth in 2024. The exchange’s success has had a significant impact on the global cryptocurrency market, helping to drive the growth of South Korea’s digital asset market and boosting the prices of many cryptocurrencies. As the crypto market continues to evolve, it is likely that Upbit will remain a major player, with its success benefiting both investors and the wider digital asset ecosystem.
Sources:
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- [1] South Korean exchange Upbit sees massive earnings growth in 2024 amid regulatory hiccups (CryptoSlate)
- [2] South Korean exchange Upbit sees massive earnings growth in 2024 amid regulatory hiccups (CryptoRank)
- [3] Doland Tremp Price: TREMP Live Price Chart, Market Cap & More (CoinGecko)
- [4] CoinNess Global – X (Twitter)
- [5] Neutaro Price Chart (NTMPI) (CoinGecko)
- [6] South Korea temporarily lifts Upbit’s 3-month ban on new signups (Cointelegraph)
- [7] South Korean Court Halts Upbit’s Three-Month Business Restriction (Mitrade)
- [8] Dunamu boasts accumulated Q3 net profit of $1.7 bn, vows to expand overseas (KED Global)
