The Monopolization Crisis: Upbit’s Inescapable Shadow

South Korea’s crypto market is facing a seismic shift — and it has a name: Upbit. The exchange has tightened its grip so dramatically that smaller players are gasping for air, with analysts warning that Korea’s once-competitive crypto ecosystem could be heading toward an irreversible monopoly.

With 72% of South Korea’s total crypto trading volume, Upbit’s dominance now borders on absolute control. Its rivals — Bithumb, Korbit, Coinone, and GOPAX — have faded to the edges, their daily volumes collapsing to near irrelevance.

New figures from the Financial Supervisory Service (FSS) reveal the scale of Upbit’s command: over 833 trillion won in trades in just the first half of 2025 — more than double Bithumb’s total during the same period.

The Numbers Don’t Lie

Even as Bithumb scrambles to close the gap, the tide seems irreversible. Upbit’s parent company Dunamu recently struck a partnership deal with Naver, the nation’s biggest internet platform, further consolidating its position.

But even before the Naver deal, Upbit’s lead was staggering. Bithumb holds a measly 26% of the market share, while Coinone, Korbit, and GOPAX barely register at 1.8%, 0.5%, and 0.2% respectively.

Once-vibrant platforms now languish in obscurity. Their daily trading volumes — once in the billions — have collapsed to a fraction of their former highs. Local media now describe them as “functionally insignificant.”

Upbit and Bithumb together command an overwhelming 90% of South Korea’s 10 million crypto users, leaving the rest of the exchanges to fight over the scraps.

Industry insiders warn the imbalance could soon worsen. If Dunamu’s partnership with Naver fully integrates and Bithumb’s international expansion proceeds, South Korea may find itself with one exchange towering over the rest.

Government Steps In — But Too Late?

Upbit’s meteoric rise has now forced South Korean regulators to confront an uncomfortable reality: one exchange may soon control the country’s entire crypto trading ecosystem.

Lawmakers fear a situation where a single platform can dictate listing rules, fee structures, and liquidity access, concentrating both market risk and political influence in one corporate entity.

The Financial Supervisory Service (FSS) has acknowledged the imbalance, but critics argue Seoul’s reaction has been timid at best.

Despite multiple warnings, Upbit’s dominance has already touched 80% of national volume — a concentration of market power rarely seen outside of state-backed monopolies.

Power, Trust, and the Peril of Success

Upbit’s story is one of ruthless efficiency and perfect timing. It capitalized on regulation, public trust, and brand recognition while its rivals stumbled under compliance hurdles and thin liquidity. In a way, its dominance reflects the natural evolution of any maturing industry — consolidation around the strongest player.

But make no mistake — there’s danger in that dominance. When a single entity holds overwhelming control over liquidity and listings, the spirit of decentralization that drives crypto begins to fade. Innovation thrives in competition, not conformity.

In my view, Upbit’s rise is both a triumph and a warning. It shows that Korea’s crypto infrastructure is strong and trusted — but also that trust can curdle into dependency. Unless regulators find a balance between growth and fairness, the market risks becoming a one-exchange empire.

And in crypto, empires rarely end well.