A new report by Business Korea reports that the vast majority of local cryptocurrency exchanges are on the verge of bankruptcy due to the small volume of transactions:
🗣 “Only five or six South Korean exchanges are among the 100 largest in the world in terms of transactions. It is no exaggeration to say that 97% of domestic exchanges run the risk of going bankrupt due to the low volume of operations. ”
Indeed, this year at least one cryptocurrency exchange has already closed due to a decrease in trading volume. For example, a Coinnest spokesperson noted that their closure was “a natural result of lower trading volumes.”
It is reported that the low volume of transactions in South Korea has led to the fact that a growing number of South Korean crypto start-ups seeks to place their coins on foreign exchanges. The report also says that “to attract South Korean crypto projects, foreign cryptocurrency exchanges opened the Korean won market.”
Binance Labs and BW.com have made additional efforts to attract South Korean companies: BW.com has already listed Ziktalk, Storichain, Payexpress and Sigma Chain, and plans to open a market by the end of this month.
Binance Labs directly work with Korean blockchain projects, accelerating their development. In June, the Singapore-based company Bitholic added the Korean cryptocurrency BOScoin to its platform.
Interestingly, in December 2017, South Korea accounted for 20% of the global Bitcoin trading volume; cryptomania in the country was so intense that Prime Minister Lee Nak-Yong called the BTC trade “a serious pathological phenomenon.”