Korean crypto exchanges take early steps to attract corporate investment

Visual representation of Bitcoin and other cryptocurrencies / Korea Times file

By Lee Yeon-woo

Korean cryptocurrency exchanges are ramping up efforts to attract corporate investors and establish a dominant position in the market, industry observers said Monday, as corporate investment in virtual assets is gradually being permitted starting in the first half of the year.

Korea’s top two cryptocurrency exchanges, Upbit and Bithumb, recently launched dedicated sections on their official websites for corporate account inquiries and have begun accepting applications from business clients. Once an inquiry is submitted, a corporate representative from the exchange follows up to provide detailed instructions and support.

“For corporate clients, the key factors are the exchange’s credibility, investment efficiency and its potential for growth as a long-term partner,” a Bithumb official said. “Bithumb is ready to go beyond short-term trading and serve as a strategic asset management partner for businesses.”

Korbit recently teamed up with Shinhan Bank to actively expand its corporate services. The exchange said it is pursuing a wide range of entities, including government agencies, publicly listed companies and nonprofit organizations.

Coinone said it is in talks with its partner bank, KakaoBank. GOPAX has yet to launch full-scale efforts to attract corporate clients.

The recent push by cryptocurrency exchanges to attract corporate clients comes as the Financial Services Commission announced a three-phase plan to allow corporate entities to open accounts. Corporate entities in Korea were previously barred from accessing and investing through cryptocurrency exchanges.

Under the plan, law enforcement agencies and nonprofit organizations will first be granted access in the second quarter of this year. It will gradually expand to include institutional investors and general corporations. No specific guidelines have yet been issued.

Still, industry insiders believe the influx of 3,500 listed companies and institutional investors is set to drive the next phase of exchange growth. The Korbit Research Center projects that the influx of corporate funds into the market could generate 46 trillion won ($31.2 billion) in value by 2030.

“For over a decade, domestic cryptocurrency exchanges have focused solely on retail clients. Corporate account services, if adopted in full scale, are expected to revitalize the market,” an industry official said. “However, with multiple exchanges expected to enter the corporate market around the same time, competition for early market dominance is likely to heat up.”