Korean Exchange Monopoly Battle: The KYC Compliance Controversy Behind the 72% Market Share

【Chain Wen】The Korean crypto exchange market has recently revealed an interesting phenomenon. According to media reports, Upbit accounted for 72% of the Korean market share in the first half of 2025, and this market concentration has sparked considerable discussion.

The issue originated from a controversy over vested interests. In February this year, a congressional representative requested the team to prepare inquiry materials, directly pointing to a leading exchange with a monopoly problem. The specific accusation was that this exchange had 700,000 cases of KYC violations. Subsequently, the representative repeatedly criticized the "monopoly position of a single exchange" during a congressional meeting. Although no specific company name was directly mentioned, the remarks were quite clear.

Interestingly, investigative reports uncovered the underlying connections. In November, this representative had a private meeting with Bithumb, and shortly after, his son was hired as an intern by Bithumb’s data team. Following this, his pressure tactics in Congress began to manifest—questioning materials against competitors were gradually pushed forward.

This reflects a reality in the Korean crypto exchange market: Upbit, as the platform with the highest market share, indeed holds a monopoly position. But how to find a balance between fair competition and compliant regulation seems to be a challenge. KYC violations, market monopoly, conflicts of interest—these issues are intertwined, casting a shadow over the healthy development of Korea’s crypto market.