South Korea Crypto Demand Soars with Bithumb Exchange Controlling Bulk of Trading Volume
Trading in South Korea’s crypto exchanges has increased substantially, reaching a rate of 10 to 15 percent. One particular trading platform, Bithumb, has benefited from the increased trading volume. It’s daily trading of bitcoin to won have become the second most liquid pair, right after the bitcoin to USD.
Over the course of 24 hours, the platform has transacted $581,487,870 in bitcoin to won and processed about $2.7 billion in trades of cryptocurrency.
The second most prominent cryptocurrency exchange in South Korea is Upbit and its trading volume has increased by 186 percent, most likely due to the increased surge in demand for bitcoin cash. These improvements may also be behind the 30 percent increase in price of BCH over the course of three days. Another factor could be the scheduled hard fork.
Other cryptocurrency platforms are seemingly supportive of the outlook for bitcoin cash. For example, Coinbase stated, “Twice a year, the Bitcoin Cash (BCH) network hard forks as part of scheduled protocol upgrades. The next BCH hard fork is scheduled for November 15, 2018, and Coinbase is prepared to support the published roadmap from bitcoincash.org. However, unlike previous BCH hard forks, there is a competing proposal that is not compatible with this published roadmap.”
The greater trading volume experienced by various exchanges in Korea may be due to enhanced demand for Bitcoin, which is the dominant cryptocurrency in the country. The trading volume may do well to push up the price of bitcoin, which has been hovering around $6,300 to $6,800 over the past few months.
Investors are not the only ones who are likely pleased with what is taking place. This week, South Korea’s government and financial authorities made several positive statements about cryptocurrencies and digital asset exchanges. For instance, the Financial Services Commission (FSC), which is akin to the U.S. SEC, stated that banks are allowed to provide cryptocurrency exchanges with virtual bank accounts. Further, a recent court ruling from the Seoul District Court indicates that banks must provide transparent, fair, and stable services to cryptocurrency exchanges as well.
Even though bitcoin cash is faring well, it isn’t expected for other cryptocurrency trading to improve. Right now, bitcoin cash has a market cap of $9.77 billion.