Upbit has achieved a monumental feat in the South Korean cryptocurrency market, commanding over 80% of the trading volume. This level of dominance is unparalleled in other major crypto hubs around the world. Bloomberg reports that this surge in market control comes amid a broader bull run, propelling Upbit into the top five global exchanges with a daily trading volume neck-and-neck with Coinbase at $2.84 billion.

The significant trading volume on Upbit reflects a broader trend in South Korea, where cryptocurrencies have seen a meteoric rise in popularity. According to official figures, around 10% of the population, or over 6 million Koreans, traded cryptocurrencies in the first half of 2023. This enthusiasm is part of why the Korean Won has overtaken the American dollar as the leading currency for crypto trades globally in the first quarter of 2024.

The regulatory landscape in South Korea is set for a major overhaul with the introduction of the Virtual Asset User Protections Act in July 2024. This new framework aims to implement stricter requirements and consequences for exchanges, potentially including life sentences for criminal acts. Nam Hyeon Joon, a spokesperson for Korea's second-largest exchange, Bithumb, highlighted the significant capital and manpower demanded by these new requirements.

"For existing and new entrants, the cost of complying with these requirements could be substantial," stated Simon Seojoon Kim, CEO of the Venture Capital firm Hashed.

Despite these challenges, Upbit's dominance remains largely uncontested. Other platforms have attempted to challenge its supremacy, with Bithumb reaching a market share peak of 39.2% in January through a zero-fee campaign. However, these efforts have seen limited success, with Upbit continuing to lead the market by a wide margin. The evolving regulatory environment and the high cost of compliance have made it increasingly difficult for new entrants to compete, further cementing Upbit's position as South Korea's crypto titan.