97% of S. Korean Crypto Exchanges ‘In Danger of Bankruptcy’: Report

97% of S. Korean Crypto Exchanges ‘In Danger of Bankruptcy’: Report

A new report from Business Korea has claimed that the vast majority of domestic cryptocurrency exchanges are on the edge of bankruptcy due to low transaction volume: ‘only five or six South Korean exchanges rank among the top 100 in the world in terms of transaction volume,” the report says. “It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions.”

While the report did not provide hard data to back up this claim, at least one cryptocurrency exchange has already shut down this year because of a dropoff in cryptocurrency trading volume: a representative from Coinnest told CoinDesk Korea that its shutdown was “a natural result of a decrease in trading volume.” The representative also cited “regulatory issues and business decisions.” Low volume at home is causing crypto startups to seek listings on foreign crypto exchanges

Additionally, low transaction volume in South Korea has allegedly caused a growing number of South Korean crypto startups are reportedly seeking to list their coins on overseas exchanges–and allegedly, the market is ripe: the report also claimed that “foreign [cryptocurrency] exchanges have opened the Korean won money market to attract South Korean cryptocurrency projects.”

The report claimed that so far, both Binance Labs and BW.com have shown particular interest in attracting these South Korean projects: BW.com, which has already listed Ziktalk, Storichain, Payexpress and Sigma Chain, is also “planning to absorb domestic cryptocurrency investors by opening the won market by […]