The South Korean crypto market is facing a shakeup. Huobi Korea, formerly the Korean arm of HTX (formerly Huobi Global), is set to close its doors on January 29th. This announcement follows a string of closures of smaller exchanges in the region, raising questions about the sustainability and competitiveness of the South Korean crypto landscape.
Why is Huobi Korea Shutting Down?
Huobi Korea cited a challenging business environment as the primary reason for its closure. While the specific difficulties weren’t detailed, the announcement highlights the increasing pressures faced by smaller crypto exchanges in South Korea.
- Business Environment: Unspecified challenges led to the decision.
- Withdrawal Availability: Users can still withdraw funds after the shutdown.
“Considering the current business environment, the company is inevitably ending the virtual asset exchange service,” the exchange stated.
See Also: Users Withdrew A Massive $256 Million From HTX Due To Lost Of Trust
A Look Back: Huobi Korea’s Journey
Established in 2017, Huobi Korea initially operated as the Korean branch of Huobi Global (now HTX). However, the two entities severed ties in January 2023.
A Trend of Closures: What’s Happening in South Korea?
Huobi Korea’s shutdown is not an isolated incident. Other smaller South Korean exchanges, such as Cashierest and Coinbit, have also ceased operations recently. CoreDAX has suspended trading services and is reportedly facing wage delays.
The Dominance of the “Big Five”
The South Korean crypto market is heavily concentrated among the top five exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. According to a Financial Services Commission (FSC) report from June 30, 2023, these five exchanges account for a staggering 99.6% of the country’s total crypto trading volume.
These five are also the only exchanges that have successfully registered with local financial regulators, highlighting the stringent regulatory environment in South Korea.
What Does This Mean for the Future of Crypto in South Korea?
The closure of Huobi Korea and other smaller exchanges underscores the challenges faced by smaller players in a highly competitive and regulated market. The dominance of the “Big Five” suggests that only well-established and compliant exchanges can thrive in South Korea.
Key Takeaways:
- The South Korean crypto market is becoming increasingly concentrated.
- Regulatory compliance is crucial for survival.
- Smaller exchanges face significant hurdles in competing with larger, established players.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.