[Bitcoin Now] Sideways Movement Around 55 Million Won... Persistent Regulatory Risks

80% of Domestic Cryptocurrency Transactions Occur on Upbit

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin is hovering around the 55 million KRW mark. It is interpreted that the regulatory stance of financial authorities in countries such as the United States and China has adversely affected the cryptocurrency market.

According to the domestic cryptocurrency exchange Upbit, as of 2:03 PM on the 1st, Bitcoin recorded 55.05 million KRW, down 0.31% from the previous day. After rising to 58 million KRW on the 29th, it has been declining for four consecutive days. It also fell to 54.53 million KRW at 10:24 AM that day.

The cryptocurrency market appears to be sluggish due to regulatory risks from various governments. On the 31st of last month (local time), cryptocurrency specialized media CoinDesk analyzed that the market's focus is on regulations by financial authorities in China and the United States.

On the 28th of last month, Yin Yuping, head of consumer protection at the People's Bank of China, the central bank, said in an interview with the People's Daily, "Cryptocurrencies such as Bitcoin are illegal and have no real value," adding, "The general public should recognize the increased risks of investing in cryptocurrencies and refrain from investing."

The U.S. Securities and Exchange Commission (SEC) remains silent on approving cryptocurrency-based Exchange-Traded Funds (ETFs). According to CoinDesk, U.S. analysts are waiting for the approval and timing of Bitcoin ETFs within the year, but the SEC is preparing stronger regulations related to decentralized finance (DeFi).

Concerns Over Upbit's Monopoly Grow... 80% of Domestic Cryptocurrency Trading Volume Occurs on Upbit

Meanwhile, it has been revealed that almost all domestic cryptocurrency trading occurs on Upbit. According to the office of Yoon Chang-hyun, a member of the National Assembly's Political Affairs Committee from the People Power Party, as of the 26th of last month, 83.28% of the total domestic cryptocurrency trading volume occurred on Upbit. This was followed by Bithumb (11.62%), Coinone (3.10%), GDAC and Huobi Korea (0.68%), GOPAX (0.55%), and Korbit (0.21%).

Since the beginning of this year, domestic cryptocurrency trading volume has started to concentrate on Upbit. In December last year, the monthly average trading volume shares of Upbit and Bithumb were 46.34% and 43.01%, respectively. However, in January this year, the shares of Upbit and Bithumb began to diverge to 55.17% and 34.16%, respectively, and by July, Upbit's share surged to 80.53%.

Representative Yoon said, "The current monopoly structure of Upbit is not due to market order or consumer choice but due to unfair legislation that has shifted administrative approval procedures to banks," adding, "All exchanges should be fairly reviewed, and to restore fairness in the review process, the amendment to the Specific Financial Information Act should be expedited." On the 4th of last month, Representative Yoon proposed an amendment to the Special Act on Reporting and Using Specified Financial Transaction Information to extend the reporting deadline for virtual asset operators by six months.

This content was produced with the assistance of AI translation services.