[Bitcoin Now] Why Virtual Asset Exchanges Keep Launching 'Copy-Paste Services'

Following Korbit and Upbit, Coinone Also Launches 'Coin Accumulation'
Industry: "Only Services Permitted Within Regulations Are Being Implemented"

Virtual asset exchanges are introducing new services such as 'Coin Savings,' but most of these offerings simply replicate products already launched by other exchanges. Industry insiders agree that the lack of a second-phase virtual asset law and high regulatory barriers are preventing the launch of new businesses, resulting in a structure where services inevitably become standardized.

Yonhap News Agency

According to the virtual asset industry on December 9, Coinone launched its installment investment service, 'Coin Savings,' on December 2. Coin Savings is an automated investment service that allows users to set their preferred virtual asset, schedule, and amount to place regular buy orders.

This service is already being offered by other virtual asset exchanges. Upbit launched its own 'Coin Savings' service in August last year. As of early this month, the cumulative investment amount exceeded 440 billion won, with more than 210,000 users. Korbit introduced an automated investment method for Bitcoin and Ethereum called 'Smart Investment Method' in 2021, and in 2023 launched a themed product called 'Easy Savings Service.'

This repetition of services introduced by one exchange and quickly adopted in similar forms by others is not limited to 'Coin Savings.' For example, the 'virtual asset lending service' is also offered by most exchanges. After Bithumb launched its service in June this year, Upbit followed in July, Coinone in September, and Korbit started last month. The coin lending service allows users to deposit Korean won or virtual assets as collateral to borrow other coins.

Staking services are also similar. Staking services involve depositing (delegating) owned virtual assets to a blockchain network to contribute to its security and operation (validation), and receiving rewards similar to interest in return. Most virtual asset exchanges offer such services.

The reason virtual asset exchanges provide such similar services is believed to be that transaction fees account for the majority of their revenue. As of the third quarter of this year, Upbit (Dunamu) and Bithumb recorded revenues of 1.1878 trillion won and 525.2 billion won, respectively, in the third quarter. Of these, fee revenues were 1.1633 trillion won and 516.7 billion won. This means 97.94% and 98.38% of total revenue comes from fees. Since transaction fees make up the bulk of their earnings, exchanges are compelled to focus on services related to these fees.

Additionally, opinions suggest that the difficulty in launching new businesses and strong regulations inevitably lead to similar services. Currently, due to the absence of a second-phase virtual asset law, companies are unable to pursue new business initiatives. With no clear legal basis, operators face compliance risks, making it difficult to establish mid- to long-term strategies or pursue new ventures. As a result, exchanges repeatedly expand only those businesses permitted within the regulatory framework, leading to a trend of 'homogenization' rather than 'advancement' in service structures.

An exchange official stated, "The reason domestic won-based exchange services appear similar is not simply because they copy each other, but because the level of virtual asset regulation in Korea is extremely high. With the recent introduction of coin lending guidelines, as well as requirements for real-name accounts, anti-money laundering (AML), security, and abnormal transaction monitoring, the number of conditions and requirements to comply with has increased significantly. As a result, regulatory compliance has become the absolute priority over innovation, leading everyone to converge on the same structure."