South Korea’s top cryptocurrency exchanges suffered massive profit collapses in the first quarter of 2025, underscoring the severe impact of reduced trading activity across the digital asset market. Bithumb, the country’s second-largest exchange, reported a 57.6% year-over-year revenue decline to 82.5 billion won ($61.1 million) and an operating profit plunge of 95.8% to just 2.9 billion won ($2.1 million). The exchange swung to a net loss of 86.9 billion won ($64.4 million), according to a regulatory filing with the Financial Supervisory Service.
Meanwhile, Dunamu, the parent company of market leader Upbit, saw operating profit drop 78% year-on-year to 88 billion won ($67.7 million). Revenue fell 55% to 234.6 billion won ($180.5 million), and net profit also declined 78% to 69.5 billion won ($53.5 million). Both firms attributed the downturn to a sharp contraction in digital asset trading volumes, driven by global economic slowdown, regulatory tightening, and waning retail investor appetite.
The results highlight the challenging environment for centralized exchanges in South Korea, a market once known for intense retail participation. Stricter compliance measures—including real-name account verification and enhanced AML protocols—have added operational costs, while ongoing ownership uncertainty at Bithumb and increased competition from global platforms have further pressured margins. With trading volumes remaining subdued, industry observers see these earnings as a cautionary signal about the sustainability of exchange business models in a more regulated and less speculative climate.
