TLDR
- Korbit is selling 15 BTC and 60 ETH to cover operating costs and payroll needs.
- South Korea’s five main crypto exchanges recorded their lowest weekly trading volume in two years.
- Daily trading volume across major Korean exchanges dropped 88% from the same period last year.
- Korbit’s latest crypto sale is expected to raise about 1.6 billion won in cash.
- Lower trading fees are pressuring Korean exchanges as compliance and staffing costs remain high.
Korbit’s decision to sell Bitcoin and Ethereum has put South Korea’s crypto market under fresh scrutiny, as the country’s largest exchanges face an 88% volume drop and their weakest trading activity in two years amid rising cost pressure today nationwide.
Korbit Sells Crypto to Fund Operations
Korbit announced plans to sell 15 BTC and 60 ETH between July 3 and July 31. The exchange said the proceeds would support operating expenses, including labor costs.
The move comes as fee revenue weakens across South Korea’s crypto market. Korbit, one of the country’s five licensed exchanges, depends on trading activity for a large share of its income.
The company has already sold crypto assets several times this year. Its latest sale is expected to raise about 1.6 billion won, giving the exchange more cash during a slower market period.
Korbit is owned by Mirae Asset, which gives it institutional backing. Smaller exchanges without similar support may face harder choices if trading activity remains weak.
South Korea Crypto Trading Volume Falls
South Korea’s five major won-based crypto exchanges recorded sharp declines in trading volume. Upbit, Bithumb, Coinone, Korbit, and Gopax reported combined weekly volume of about 9.97 trillion won between July 3 and July 10.
That figure equals roughly $6.65 billion and marks a 25.75% weekly decline. The total also places South Korean crypto trading near its lowest level in two years.
Daily trading volume across the five exchanges stood near 412.7 billion won on July 20. That level was about 88% lower than a year earlier, showing a steep drop in retail crypto activity.
The slowdown has followed weaker Bitcoin prices and lower activity across the wider crypto market. Bitcoin once traded above $126,000 last October, but later moved lower and hovered near the low $60,000 area.
Exchanges Face Revenue Pressure
The global crypto market also contracted over the past year. Total market value fell about 41% to roughly $2.32 trillion, adding pressure to exchanges that rely on transaction fees.
Revenue weakness has already affected larger platforms. Dunamu, the operator of Upbit, reported first-quarter sales down 55% from a year earlier, while operating profit fell 78%.
Smaller exchanges face more difficult conditions. Coinone, Korbit, and Gopax reported operating losses last year, and losses are expected to continue if volumes stay low.
Fixed costs remain a key issue. Staffing, compliance systems, technology, and security expenses do not fall as quickly as trading fees during a market downturn.
South Korean investors have also shifted more money toward local stock markets, which have shown stronger momentum. At the same time, stricter compliance rules have raised costs for licensed crypto exchanges.
Korbit’s BTC and ETH sales are not expected to move broader Bitcoin or Ethereum markets. However, the sale shows how weaker trading activity is forcing exchanges to rely on treasury assets.
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