Time and trade on crypto exchanges in Korea ebb fast

[Photo by Lee Chung-woo]

Crypto fad in South Korea has fizzled out, with the time on the app-based exchange platform thinning in June for the first time since the retail frenzy started in October last year amid depreciation in digital tokens under stricter regulations at home and abroad.

According to mobile app market data provider IGAWorks on Tuesday, Android phone users spent total 32.45 million hours on the country¡¯s largest cryptocurrency exchange Upbit app in June, plunging 57.3 percent from a month earlier.

That was the first decline in the usage time of Upbit app, which had been on a continuous surge of above 80 percent since November last year. Total usage time of Upbit further expanded this year, more than doubling from a month ago in February and March.

The Upbit app still is the most-used finance app in Korea, but its usage growth began softening to add just 0.08 percent in May when the bitcoin price tanked to below 40 million won ($34,794.71) from above 80 million won in just two months.

Time spent on second-largest platform Bithumb app started falling in May.

The 24-hour trade volume is declining as well.

Daily turnover at Upbit plummeted to $3 billion at the end of June from $30 billion in early May, and that at Bithumb to $1 billion from $5 billion.

Experts say the crypto craze has lost steam due to tougher rules at home and abroad. Beijing declared war on cryptocurrencies and banned crypto mining recently, and U.S. lawmakers also are seeking to roll out new investor protection rules on crypto investment.

In Korea, crypto exchanges are required to report their entity name and business head to the Financial Intelligence Unit, a state watchdog to prevent money laundering and other illegal activities by September 24.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]