South Korea’s crypto exchanges are enjoying a global boom in virtual currencies including bitcoin as US President-elect Donald Trump is expected to follow through on his campaign promises to support the digital assets.
The daily trading value of virtual assets on South Korea’s crypto exchanges topped that of domestic stocks, helping operators of digital currency trading platforms earn more fees to boost not only their profits and assets but also the salaries of their employees, industry sources said.
The transaction value of digital assets on Upbit, the country’s largest cryptocurrency exchange, stood at nearly 22 trillion won ($15.7 billion) for 24 hours as of 5:30 pm local time on Wednesday, according to crypto tracker CoinMarketCap.
That compared with the trading value of 10.9 trillion won on South Korea’s benchmark Kospi and 6.9 trillion won on the junior Kosdaq on the day.
MORE TRADING, MORE FEES
Upbit, which dominates the domestic crypto exchange sector with a market share of 70%, collects 0.05% of transaction values for regular orders in the South Korean won currency market and 0.139% for pre-orders, according to industry sources.
Its smaller rival Bithumb, which earns a fee of 0.04% for regular orders in the won currency market, logged a trading value of 8.8 trillion won.
That came as cryptos such as bitcoin rallied thanks to Trump’s pledge to create a friendly regulatory framework for digital currencies, set up a strategic bitcoin stockpile and make the US the global hub for the industry. A one-time crypto skeptic, Trump reversed course after digital asset companies spent heavily during election campaigning to promote their interests.
Bitcoin, the world’s most valuable crypto by market capitalization, on Thursday hit another record high, rising above $93,000 for the first time, attracting more South Korean investors to crypto markets, industry sources in Seoul said.
The digital asset has gained about 35% since Trump won the US presidential election on Nov. 5.
SURGING ASSETS, SALARIES
Such rises are expected to boost the assets of South Korea’s crypto exchanges, which hold virtual currencies.
Dunamu Inc., the operator of Upbit, had 14,641 units of bitcoin as of the end of the first half, as well as altcoins including 9,089 units of the second most valuable Ethereum and 9.3 million units of the No. 3 Tether.
Bithumb held 127 units of bitcoin and 5,386 units of Ethereum.
Their crypto holdings may increase after that, industry sources in Seoul said.
Employees of the crypto exchanges are likely to enjoy higher salaries, the sources said. Their wages are already higher than those of major banks.
Dunamu paid an average of 133.7 million won per staff to 624 employees in the first half, more than double the average of 60.5 million won of the four largest local banks. Bithumb’s salaries were averaged at 57 million won during the period.
By Hanjong Choi
onebell@hankyung.com
Jongwoo Cheon edited this article.
