South Korean Crypto Giants Face Profit Slump

Leading South Korean crypto exchanges Upbit and Bithumb are feeling the heat as their profits shrink significantly during the first half of the year. Bithumb reported an 83 percent drop in operating profit compared to the previous year, while its operating revenue fell by nearly half. Upbit’s parent company, Dunamu, saw a similar trend with operating profits tumbling 80 percent.

Industry experts point to a general contraction in global market liquidity as the main driver for these results. As trading volume dries up and investor interest cools, the bottom lines for these massive platforms have taken a direct hit.

Beyond market struggles, the regulatory climate is also tightening. The South Korean government has officially banned the prediction platform Polymarket, labeling its operations as illegal gambling. Authorities stated that the platform's betting style encourages speculation on events outside of user control, which violates local criminal and sports promotion laws.

Despite Polymarket's attempts to distance itself by removing support for local languages and currency, regulators insist that the service provides an environment that cannot be exempt from domestic laws. Investors will now be watching to see how other international platforms respond to these strict compliance requirements in the region.