Upbit, No. 1 locally and No. 2 globally, attracts young traders

Finance

Published: 30 Aug. 2021, 16:14 Updated: 30 Aug. 2021, 19:46

Upbit, No. 1 locally and No. 2 globally, attracts young traders

Prices of cryptocurrencies are displayed at a digital screen at Coinone's customer service center in Yongsan District, central Seoul, last week. Bitcoin is traded at around $48,000 as of 2:30 p.m. Monday according to CoinMarketCap. [YONHAP]

Upbit is by far the largest cryptocurrency exchange in Korea and the second largest globally in terms of trading volume.

This comes as the world remains gripped by crypto-mania and as Korea continues to crack down on unregistered exchanges, driving a flight to quality.

As of the end of last month, Upbit had 5.03 trillion won ($4.3 billion) on balance, compared with 1.03 trillion won at Bithumb, 247.6 billion won at Coinone and 68.5 billion won at Korbit. Upbit had 4.7 million users, Bithumb 1.3 million, Coinone 547,908 and Korbit 100,856.

As of 2:30 p.m. Monday, Upbit was the second largest exchange globally in terms of 24-hour trading volume, at $9.3 billion, about half of Binance’s, according to CoinMarketCap.

Trading by teenagers has increased significantly. According to Upbit rules, people 19 years old can trade under their own names.

People in this group had 4 billion won on deposit at the country's four major cryptocurrency exchanges — Upbit, Bithumb, Coinone and Korbit — as of the end of July, according to data released by the office of Rep. Yoon Doo-hyun of the main opposition People Power Party on Sunday.

Most of the teen money was deposited at Dunamu-operated Upbit. Out of the 4 billion won, some 88 percent was deposited at Upbit. Around 386 million won was deposited at Bithumb and 39 million won at Coinone. Teens had no money at Korbit.

Only won holdings were considered.

At Upbit, 28,164 investors aged 19 newly started trading April through July. Over 18,000 teenagers started trading at Upbit in April alone, when cryptocurrency prices were soaring. As trading lost some steam in June, the number of new traders on the exchange grew at a slower pace overall. In June, 1,761 new investors aged 19 started trading at Upbit.

"Cryptocurrency trading is increasing in every age group, even among young people," Rep. Yoon said. "When the government crafts policies targeting cryptocurrency trading, it should consider the perspectives of young investors."

People in their 30s had 2.2 trillion won at the four major exchanges, those in their 40s 1.7 trillion won and those in their 20s 1.2 trillion won.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]