Upbit vs Bithumb in 2025: Who Will Truly Dominate Korea’s Crypto Exchange Market?
A detailed research-based comparison of South Korea’s two leading cryptocurrency exchanges — analyzing listings, regulation, liquidity, IPO plans, and long-term competitiveness.
1. Introduction
“Who Will Truly Survive?”
As of February 2025, South Korea’s five major cryptocurrency exchanges collectively account for 16.29 million user accounts. Among them, Upbit (9.82 million) and Bithumb (approximately 4.9 million, estimated) together represent over 90% of the entire domestic market.
Notably, in 2024, the total crypto asset holdings of Korean investors surpassed KRW 100 trillion (approx. USD 75 billion) for the first time, reaching KRW 105 trillion. This milestone signals that the domestic market is not in stagnation, but rather entering a new phase of expansion.
In such a rapidly evolving landscape, the competition between exchanges has expanded beyond simple metrics such as trading volume and user acquisition. Today, key determinants of exchange competitiveness include: listing strategy, regulatory responsiveness, trust-centered operational systems, global expansion capabilities, and transparency in ownership and governance.
This report provides a comprehensive comparative analysis of Upbit and Bithumb — the two exchanges that dominate Korea’s crypto market — across 10 key dimensions. The goal is to assess the fundamental and sustainable competitiveness of each platform, far beyond short-term metrics like trading volume or hype, and to offer strategic insights into which exchange is most likely to endure and lead in the long term.
2. Comparative Analysis by Category
2.1 Listing Strategy and Market Trends
Bithumb has recently adopted an aggressive listing strategy. In just the first two months of 2025, it listed 33 new cryptocurrencies — more than triple the 9 new listings by Upbit during the same period. These listings included meme tokens like TRUMP, ANIME, and BERA, as well as several Solana ecosystem assets, indicating a fast-response strategy to capitalize on topical trends and attract trading activity.
However, the number of listings does not necessarily equate to credibility. Bithumb has a delisting rate of approximately 27%, compared to Upbit’s 22%. This suggests that while Bithumb may gain short-term user attention through trend-chasing, it potentially compromises long-term trust among investors by listing lower-quality or short-lived projects.
When comparing assets that were listed on both exchanges, Upbit listed 7 of them earlier than Bithumb, while Bithumb listed 3 earlier, with 2 assets listed simultaneously. This indicates that Upbit continues to maintain a leadership position in market responsiveness — not necessarily in quantity, but in quality and timing.
Aggressive listing is not a measure of true competitiveness.
An exchange’s listing policy reflects its due diligence, transparency, and ability to vet projects, all of which are critical in building investor trust.
2.2 Trading Volume and Liquidity Trends
As of April 2025, Upbit maintains its dominant position with a 24-hour trading volume of approximately $3.7 billion, the highest among Korean exchanges. However, this figure represents a slight decline compared to the previous year. The decrease is largely attributed to the enforcement action imposed in February 2025 by Korea’s Financial Intelligence Unit (FIU), which temporarily restricted deposits and withdrawals for new customers following anti-money laundering (AML) compliance issues at Upbit’s operator, Dunamu.
In contrast, Bithumb recorded a 24-hour trading volume of approximately $1.1 billion during the same period. While still trailing Upbit by a significant margin, Bithumb’s volume has shown consistent growth — driven by its aggressive listing strategy and a series of marketing campaigns, including airdrops and trading incentives. Since late 2024, its user acquisition has been notably strong, especially through initiatives that encouraged users to switch from competing platforms and offered promotional fee waivers.
Upbit continues to lead in absolute terms, but its sensitivity to regulatory actions has become more pronounced. On the other hand, Bithumb appears to be capitalizing on this temporary regulatory gap to expand its market share.
This highlights a critical shift: exchange liquidity competition is evolving beyond short-term volume spikes into a battle for long-term user retention and loyalty.
2.3 Exchange Asset Soundness
As of Q4 2024, Dunamu (Upbit’s operator) reported holding 16,839 BTC — equivalent to approximately KRW 2 trillion ($1.5 billion USD) — with an average annual increase of around 2,400 BTC. These assets have been accumulated primarily through transaction fees and retained earnings. Including Ethereum, USDT, and other holdings, Upbit’s total digital asset reserves amount to roughly KRW 2.5 trillion ($1.9 billion USD).
In stark contrast, Bithumb holds only about 180 BTC, equivalent to around KRW 21 billion ($160 million USD), and its total reserves — including other digital assets — stand at approximately KRW 96.5 billion ($73 million USD). This is one-third of its previously reported reserve size, indicating continued outflows due to marketing costs, event rewards, and operational expenditures.
From Q2 2025 onward, Korean regulators are expected to allow crypto exchanges to liquidate digital assets obtained via trading fees for operational use, such as payroll and tax payments. However, this will be guided by a “joint liquidation protocol” to minimize potential market impact and price manipulation.
Upbit’s strong reserve base reinforces its financial health and ability to manage risk, positioning it as a resilient platform during market turbulence. Bithumb, however, shows signs of fiscal fragility due to its high spending structure and low retention rate of reserve assets. A more stable and long-term-focused asset management strategy is urgently needed for sustainable growth.
2.4 Regulatory Compliance and Legal Risk
In February 2025, Upbit was sanctioned by the FIU for failing to meet anti-money laundering (AML) standards and insufficient customer identification (KYC) protocols. Specifically, the agency flagged 45,000 transactions between Upbit and unregistered overseas exchanges. As a result, a 3-month restriction on crypto transfers for new users was imposed.
However, in March 2025, a Korean court ruled to suspend the enforcement of this penalty. Consequently, Upbit has resumed crypto transfer services and has since implemented rapid internal upgrades to its AML systems while actively improving user protection mechanisms — an indication of its willingness to comply and restore user trust swiftly.
Meanwhile, Bithumb has not yet been officially sanctioned, but it is currently undergoing on-site inspections by the FIU regarding possible AML violations. This investigation could adversely affect Bithumb’s 2025 IPO plans. Additionally, Bithumb’s internal governance and ownership structure pose ongoing legal uncertainties.
Its largest shareholder, Vidente, was fined KRW 4.6 billion ($3.4 million USD) for violating accounting standards, while the alleged actual owner, Kang Jong-hyun, has been referred to prosecutors for embezzlement and holding shares under false names. Although Bithumb recently gained some legal clarity following the acquittal of former chairman Lee Jung-hoon by Korea’s Supreme Court, the company’s opaque governance remains a major hurdle to investor confidence and IPO readiness.
The credibility of an exchange is not determined by whether it has been penalized, but rather by how effectively it responds to and recovers from regulatory intervention.
Upbit has demonstrated the ability to manage compliance crises swiftly, whereas Bithumb remains entrenched in a state of prolonged uncertainty.
2.5 Banking Partnerships and Fiat Deposit/Withdrawal Stability
Since 2020, Upbit has partnered with K Bank to offer fiat deposit and withdrawal services in Korean won (KRW). This collaboration has been a cornerstone of Upbit’s explosive growth, significantly boosting K Bank’s customer base and deposit volume in the process. The partnership is often cited as a successful case of synergy between a cryptocurrency exchange and an internet-only bank in Korea.
However, the current contract is set to expire in October 2025, and the renewal status remains uncertain. While there have been rumors of potential negotiations with Hana Bank and Woori Bank, all parties have denied such claims. This raises concerns that failure to renew could result in liquidity disruptions or user attrition, particularly given Upbit’s high dependence on its banking partner.
In contrast, Bithumb transitioned from NH NongHyup Bank to KB Kookmin Bank in February 2024. This move is viewed as a strategic effort to enhance both the exchange’s image and the stability of its fiat operations. A partnership with a top-tier commercial bank sends a strong signal of financial trustworthiness and improved KYC standards, which may also serve as a supportive factor in Bithumb’s upcoming IPO process.
That said, both Upbit and Bithumb operate under Korea’s single-bank partnership structure, which inherently limits consumer choice and increases operational risk. Should a banking contract be terminated or disrupted, users are left with no alternative on-ramp/off-ramp options, posing a risk to both the exchange and its clients.
A banking partner functions as a financial artery for crypto exchanges — essential to user experience and trust.
Upbit, due to its reliance on K Bank, faces structural risks if the contract is not renewed, while Bithumb is leveraging its new partnership with KB Kookmin Bank to reinforce brand credibility.
2.6 User Experience (UX/UI and Investor Protection)
Since 2023, Upbit has been operating a program called “Upbit Lab”, where it collects and tests user feedback (VoC) to enhance functionality. This initiative has led to the launch of refined features such as advanced order systems, real-time trade history visualization, and improved staking interfaces — all aimed at creating a more seamless user experience.
Additionally, Upbit operates the Investor Protection Center, established in 2021. It provides not only safeguards for investors but also education on digital assets, psychological and legal support services (branded as “Upbit Care”), and contributes to building a more informed and resilient retail investor base.
Bithumb, on the other hand, launched its “User Experience Improvement Project” in June 2023, which continued until February 2024. During this 9-month initiative, Bithumb streamlined deposit and withdrawal processes, introduced support for multichain asset management, and added automatic address book saving features. The exchange also launched a “Global Price Gap” menu to show real-time kimchi premium data and partnered with third-party provider “Kimpgga” to help users compare domestic and international crypto prices more easily.
User experience is no longer about interface convenience alone — it is central to trust-building and user retention.
Upbit focuses on feature sophistication and holistic investor care, while Bithumb emphasizes accessibility, practical improvements, and information transparency.
2.7 Community and Content Operations
Upbit maintains both a YouTube channel and a company blog, but their community engagement and content distribution are relatively underwhelming. Of the 12 videos uploaded over the past year, 9 were under one minute in length, limiting the channel’s educational value. Upbit’s subscriber count remains modest at around 6,000. Additionally, Upbit does not operate an official Telegram channel — a notable omission given how critical real-time communication channels have become for Web3-native users.
In contrast, Bithumb has made concerted efforts to expand and activate its content ecosystem. Its YouTube channel regularly uploads crypto news, market analysis, and educational content. The exchange also runs an official Telegram channel, where it shares weekly reports, deposit/withdrawal notices, and market updates in real-time. Furthermore, Bithumb actively manages its Naver blog, publishing consistent weekly content and attracting around 250 daily visitors.
By integrating traditional content channels with real-time community platforms, Bithumb has increased the sense of connectivity and transparency with its user base.
Community operations are not merely about announcements — they are a channel for building ongoing trust with users.
Upbit offers a technically superior platform but has yet to demonstrate strong content or communication engagement. Bithumb, by contrast, is actively building user trust through transparency and consistent messaging across multiple platforms.
2.8 Marketing Strategy
Upbit primarily adopts a soft marketing strategy based on its established brand credibility. One notable campaign was “Sukwoo-hyung Gives Back,” launched in the second half of 2024, which featured Upbit’s CEO as a friendly character figure to build rapport with existing users.
This approach reflects a defensive positioning strategy that leverages Upbit’s dominant market share rather than aggressive customer acquisition. As a result, the frequency and intensity of promotional events remain relatively low, with the company placing greater emphasis on internal system stability than on flashy marketing transitions.
In contrast, Bithumb employs an extremely aggressive and multifaceted marketing strategy. In November 2024 alone, the number of new user signups exceeded 260,000 — more than 6 times the monthly average of earlier months that year. Key campaigns included:
- Cash or Bitcoin rewards for new sign-ups
- Airdrops for trading newly listed tokens
- Ethereum coupons for convenience store purchases
- Up to KRW 2 billion ($1.5M USD) in “exchange-switching incentives” for users migrating from competitors
- The establishment of a dedicated “Partnership Promotion Division” to institutionalize internal marketing capabilities
By combining everyday life incentives with high-value promotions, Bithumb’s “high-impact marketing” strategy has proven effective in driving short-term user inflow. However, such tactics may pose challenges in maintaining long-term user loyalty and platform stickiness.
Marketing is not just about acquisition — it must be designed for retention.
Upbit reinforces its brand identity through trust and consistency, while Bithumb pursues rapid scale-up via aggressive conversion tactics. Both strategies are valid, but their sustainability differs significantly.
2.9 Global Expansion Strategy
Upbit is actively transitioning into a “regulatory-compliant global exchange”, targeting key Southeast Asian countries such as Singapore, Indonesia, and Thailand.
- In 2023, it obtained an official license from Singapore’s Monetary Authority (MAS) and began offering services tailored to institutional investors.
- In March 2025, Upbit also secured re-authorization from Indonesian regulators, marking its return to that market with improved legal alignment.
This global push is seen as part of a larger roadmap toward a potential U.S. market entry and public listing. Upbit’s strategy centers on trust through regulatory alignment, rather than raw user growth alone.
On the other hand, Bithumb established a corporate entity in Vietnam in 2024 and has since expanded its business into diverse verticals such as:
- Hotel development in partnership with the Capella Group
- Investment in regenerative medicine firms
- Real estate consulting through a dedicated subsidiary
This model represents a non-traditional approach, aiming to strengthen its valuation ahead of IPO by diversifying local asset-based business portfolios. However, Vietnam’s regulatory landscape for digital assets remains underdeveloped, and there are legal restrictions on foreign-owned real estate operations, which introduces significant compliance risk.
Upbit is pursuing global scalability through licensed exchange infrastructure, while Bithumb is expanding via business diversification and physical asset accumulation.
Global expansion is no longer just an option — it is a prerequisite for long-term survival and capital growth.
2.10 IPO Plans
Dunamu, the operator of Upbit, has long been rumored to be preparing for a public listing on the U.S. stock market. While speculation about a potential NASDAQ IPO has circulated for years, official commentary was deferred in 2024, with Dunamu only acknowledging that the option is under consideration. Still, in early 2025, the company distributed its largest-ever dividend (KRW 8,777 per share), signaling strong financial performance and market confidence in its long-term profitability.
Bithumb initially attempted an IPO in 2020 but suspended the process due to regulatory uncertainty. It has since resumed its IPO efforts, targeting a public listing in the second half of 2025. Ongoing legal issues surrounding major stakeholders — especially Vidente and alleged beneficial owner Kang Jong-hyun — have been a significant obstacle. However, in a key development, former Chairman Lee Jung-hoon was cleared of fraud charges by Korea’s Supreme Court, resolving a long-standing legal overhang.
Despite this, complex governance structures and lingering transparency concerns still present challenges to Bithumb’s IPO aspirations. Structural reforms and stronger internal controls will be essential to win over institutional investors and regulatory bodies.
An IPO is not just a capital-raising event — it is a litmus test for the structural soundness, transparency, and strategic maturity of an exchange.
Only those platforms that demonstrate professional risk management and clear governance will survive the scrutiny of public markets.
3. Conclusion
As of 2025, South Korea’s crypto exchange landscape may appear stable on the surface — Upbit continues to dominate through market share and operational reliability, while Bithumb has been gaining ground through aggressive listings, targeted marketing, and platform enhancements.
However, the core question posed by this report is not “Who is #1?” but rather, “Who is built to last?”
Volume, user acquisition, and promotional activity are important performance indicators, but they only reflect the current moment. The real determinants of long-term survival lie beyond the numbers. The ability to respond to regulation, the robustness of internal systems, the soundness of asset reserves, and the capacity to scale globally with regulatory compliance — these are what will define the next generation of industry leaders.
As Korea’s crypto market matures, users are increasingly shifting their focus from temporary incentives to platforms they can trust with their assets. This transition toward trust-based preferences will become even more pronounced as government oversight tightens and compliance standards grow more complex.
Upbit appears well-positioned in terms of internal stability, conservative management, and regulatory responsiveness — offering a robust foundation for sustainable leadership. Bithumb, in contrast, is building momentum through bold public engagement, media strategy, and market diversification, demonstrating agility and expansion potential. Yet both are faced with a common challenge: to move beyond being simply a “crypto exchange” and evolve into trust-centric ecosystems that serve users, regulators, and institutions alike.
In the end, sustainable dominance comes not from speed, but from resilience — and only those platforms with sound governance, dependable infrastructure, and long-term strategic vision will emerge as true winners.
May this report serve as a compass for discerning the underlying competitiveness of exchanges, beyond the noise of short-term performance — and guide global stakeholders toward better-informed decisions in the Korean market.
