South Korea's two largest cryptocurrency exchanges are facing a pronounced earnings downturn, according to newly released financial results from Dunamu, operator of Upbit, and Bithumb.
Dunamu reported first-half operating profit of 106.8 billion won ($77.9 million), an 81% year-on-year decline. Operating revenue fell 50.9% to 386.3 billion won ($282.0 million). The company had posted around 561 billion won in operating profit in the first half of the previous year, with revenue around 786 billion won.
Bithumb said second-quarter operating profit dropped 44% year-over-year to 12.1 billion won (about $9 million), while revenue declined 35.8% to 86.3 billion won. The exchange swung to a net loss of 21.8 billion won from a profit of 22.0 billion won a year earlier.
Both companies attributed the slowdown to reduced crypto trading volumes. Dunamu noted subdued activity following the previous year's bull run, lower volatility, and reduced retail participation. Bithumb specifically pointed to the prolonged hawkish stance of the U.S. Federal Reserve and a shift by investors into traditional equities, particularly AI and semiconductor stocks.
The results mirror broader pressure across global exchanges, with firms such as Coinbase also reporting lower trading volumes. For South Korea, the earnings signal cooling retail enthusiasm in a market historically known for high speculative participation. Upbit remains dominant, but its parent may need to focus on cost management and new revenue streams. Bithumb, meanwhile, faces a tough path as it navigates regulatory scrutiny and shifting investor behavior.
