Nowungrae: "Leaving the Top 4 Domestic Cryptocurrency Exchanges Ensures Market Stability"

"Financial Services Commission and Financial Supervisory Service Must Create a Market Structure of Autonomous Competition"

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] On the 7th, Roh Woong-rae, a member of the Democratic Party of Korea, argued that to prevent the harms of monopoly, at least 3 to 4 of the four major domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit) should continue operating.

According to the amendment to the Act on Reporting and Using Specified Financial Transaction Information (the Specified Financial Information Act), virtual asset service providers currently operating must complete their registration with financial authorities by the 24th. However, as of this date, only one cryptocurrency exchange, Upbit, has submitted its registration to the Financial Services Commission (FSC).

The harms of monopoly have already appeared in the cryptocurrency market. As of the 6th, Upbit's market share among cryptocurrency exchanges reached 88.25%. This was followed by Bithumb (7.53%), Probit (1.63%), Coinone (1.55%), and Huobi Korea (0.48%).

Rep. Roh said, "If a monopolistic market forms, cryptocurrency exchanges can arbitrarily list or delist coins or raise transaction fees. At least 3 to 4 cryptocurrency exchanges are needed so that the market can stabilize through autonomous competition."

He added, "Cho Sung-ok, the chairperson of the Korea Fair Trade Commission, also said she would look into the monopoly issues of cryptocurrency exchanges. The FSC and the Financial Supervisory Service must actively step up to create a market structure based on autonomous competition."