Upbit Emerges as South Korea's Primary Crypto Liquidity Hub, Research Shows

Recent research indicates that Upbit has established itself as South Korea’s primary liquidity hub in the crypto market. The findings highlight the exchange’s growing dominance over local and international competitors. This trend has been supported by regulatory actions and market dynamics shaping the country’s crypto landscape.

Korbit, a South Korean crypto exchange, has announced it will not appeal a $2 million fine related to anti-money laundering (AML) protocol failures. The decision comes as Mirae Asset moves forward with plans to take over the struggling platform, whose market share has plummeted to 0.5%. The fine and lack of appeal underscore the regulatory scrutiny facing crypto exchanges in the region.

The Bank of Korea recently confirmed its decision to hold interest rates at 2.50% for the fifth consecutive meeting. Governor Rhee emphasized currency stability as a key factor in the decision. The policy stance remains neutral, with most board members expecting no changes in the next three months. This prolonged pause is expected to continue into 2026, according to UOB Group’s analysis.

Market analysts are closely watching the USD/KRW exchange rate for signs of an uptrend. USD/KRW is forming a potential Inverse Head and Shoulders pattern, with a breakout above the 1488 level signaling a larger upward movement. A successful breakout could push the pair toward 1497/1502 and eventually 1525. The 1428 level remains a critical support point to monitor.

Why Is Upbit’s Dominance Significant?

Upbit’s position as South Korea’s main liquidity hub reflects broader market consolidation in the region. The research shows that liquidity concentration on a few major platforms is increasing, which could influence trading dynamics and pricing efficiency. For investors, this trend suggests a more centralized market structure, which may affect trade execution and risk management strategies.

The regulatory landscape in South Korea is also playing a role in shaping market outcomes. Korbit’s decision not to appeal its fine highlights the stricter enforcement of compliance measures, particularly in AML protocols. This regulatory pressure may lead to further consolidation among smaller exchanges. Investors should monitor how regulatory changes impact market participation and platform competitiveness.

What Do Analysts Predict for 2026?

The Bank of Korea’s neutral stance on interest rates suggests a data-dependent approach to monetary policy. With five board members expecting no rate changes in the next three months, the likelihood of an extended pause is high. The central bank is expected to update its economic forecasts in February. Investors should assess how this policy stance affects the won and the broader economy.

Market analysts are also watching the technical outlook for USD/KRW. The potential breakout above 1488 could confirm an uptrend and trigger further gains. A move toward 1525 would represent a significant shift in the exchange rate. Traders and investors should monitor price action and volume for confirmation of the pattern.

KKR’s recent $2.5 billion fundraising for Asia Pacific private credit signals strong investor demand for credit strategies in the region. The capital will support KKR’s pan-Asia credit investments, including senior and unitranche lending. This move reflects a growing interest in private credit as an alternative to traditional financing. Investors in the region may see more opportunities in credit-focused strategies.

Private equity firm KKR has also made major real estate acquisitions in Japan and South Korea. These deals, including the purchase of a logistics facility in Incheon, highlight KKR’s focus on infrastructure and real estate. The firm’s credit strategies are aligned with long-term trends such as urbanization and digitalization. These developments could influence broader investment flows in the Asia-Pacific market.

Overall, South Korea’s crypto and financial markets are undergoing significant structural changes. Upbit’s dominance, regulatory actions, and monetary policy decisions are all shaping the investment landscape. Investors should remain attentive to how these factors evolve in the coming months.