Upbit 2.1%·Bithumb 2.2%... Interest Rate Competition Heats Up Until Dawn

Upbit→Bithumb→Upbit→Bithumb
Korbit Joins... Shocking Increase from 1.5% to 2.5%

Logos of Upbit and Bithumb. Photo by each company

Upbit and Bithumb, the top two virtual asset exchanges in South Korea, engaged in a fierce game of brinkmanship over customer deposit usage fees until the early hours of the 20th.

The move started with Upbit. On the 19th around 10 PM, Upbit announced a rate of 1.3%.

Subsequently, Bithumb announced a rate of 2.0% at 11:20 PM. Upbit then re-announced a rate of 2.1% around 11:59 PM. Bithumb also re-announced a usage fee rate of 2.2% shortly after midnight on the 20th.

Korbit joined in as well. Initially proposing 1.5%, Korbit re-announced at 1 AM on the 20th that the deposit interest rate was raised to 2.5%.

Earlier announced rates by Coinone (1.0%) and Gopax (1.3%) remained unchanged.

This competition is interpreted as an overheated rivalry among exchanges to prevent customer attrition.

According to the Virtual Asset User Protection Act, which took effect on the 19th, virtual asset exchanges are required to pay usage fees on deposits to users. The Virtual Asset Act, the first industry-specific law, provides a legal basis to protect users and establishes a regulatory framework against unfair trading practices such as market manipulation.