South Korea’s crypto exchange sector saw operating profits fall 78% in the first half of 2026 compared with the previous six months, according to the Financial Services Commission. The regulator’s survey of 26 registered virtual asset service providers found that average daily trading volume also dropped 44%, while sales declined 41%, showing a sharp contraction in domestic market activity.
The FSC said market capitalization across domestic exchanges fell by KRW28.3 trillion, or 33%, while won deposits declined KRW2.9 trillion, or 35%. South Korea still had 17 exchange service providers in the survey, and KRW-based platforms continued to dominate trading, reinforcing how weaker turnover directly pressured the business performance of the country’s cryptocurrency exchanges.
The number of accounts eligible to trade edged up 0.4%, meaning the profit decline came despite a slightly larger user base. The next signal will be whether trading volumes and deposits recover in the second half of 2026, as sustained weakness would keep pressure on exchange revenues while any rebound could improve operating performance.
Source: Financial Services Commission.
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