Upbit
Overview
Upbit is South Korea's largest virtual asset (cryptocurrency) exchange, operated by Dunamu Inc. It launched in October 2017 and operates KRW (Korean won), BTC (Bitcoin), and USDT (Tether) markets together. It accounts for the vast majority of domestic virtual asset trading volume and effectively serves as the standard infrastructure of the Korean virtual asset market.
Main Content
Operator and Founding Background
The operator of Upbit is Dunamu, headquartered in Gangnam-gu, Seoul, with CEO Oh Kyung-seok. At its launch in October 2017, it secured overseas liquidity through a partnership with the U.S. exchange Bittrex and grew rapidly with investment from Kakao-affiliated investors (such as Kakao Ventures). Afterwards, it was reorganized into a structure in which Dunamu directly pursued both the exchange business and blockchain technology research.
Market Structure and Trading Method
Upbit provides three main markets.
- KRW market: A market where domestic users directly trade virtual assets with Korean won, and it has the largest trading share.
- BTC market: A market for trading altcoins using Bitcoin as the base currency.
- USDT market: A market based on the dollar-pegged stablecoin, operated to reduce discrepancies with global prices.
The base trading fee is around 0.05% of the executed amount, and fee discount coupons and tier-based benefits are provided. It also supports order book-based limit and market orders, reservation orders, and automated buy/sell functions.
Deposits and Withdrawals and Real-Name Verified Accounts
Under the virtual asset service provider reporting system and the Act on Reporting and Using Specified Financial Transaction Information (Special Financial Information Act), Upbit permits KRW deposits and withdrawals only through real-name verified deposit/withdrawal accounts. It previously partnered with NongHyup Bank and changed its partner bank to Kbank in 2020, after which the collaboration structure with Kbank has been maintained. Users must link an account in their own name 1:1 with their exchange account, and deposits/withdrawals through another person's account are blocked.
Security System
Upbit stores a significant portion of assets in cold wallets (offline wallets) and operates two-factor authentication (OTP), withdrawal address whitelists, and a Fraud Detection System (FDS). Because there have been some hacking and computer system failure incidents, its incident response system and user protection measures have been continuously strengthened.
Regulatory Response and User Protection
Following the enforcement of the Special Financial Information Act in 2021, it completed business registration after obtaining Information Security Management System (ISMS) certification and confirming real-name verified accounts, and it applies the Travel Rule (verification of sender and recipient information when transferring virtual assets). Under the Virtual Asset User Protection Act, which took effect on July 19, 2024, it must separate custody of deposits and pay fees for their use, prohibit price manipulation and unfair trading, and constantly monitor abnormal transactions.
Market Position and Service Expansion
Upbit is evaluated as having a trading value share of 70–80% among the five major domestic KRW exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax). It supports trading only for coins that pass its listing review standards, and operates a system for designating cautionary items and terminating trading support (delisting). In addition, it carries out ecosystem expansion activities such as staking, custody, and the Upbit Developer Conference (UDC).
Latest Trends
With the enforcement of the Virtual Asset User Protection Act in July 2024, the grounds for exchanges' obligations to monitor and report abnormal transactions and for imposing fines became clearer, and domestic exchanges including Upbit greatly increased investment in monitoring organizations and IT infrastructure. From the end of 2024 through 2025, as the market recovered, with Bitcoin hitting an all-time high, Upbit's average daily trading value and new sign-ups surged, and its cumulative number of users is known to have exceeded 10 million. In 2025, large-scale partnerships such as a share swap between Dunamu and Naver Financial are being pursued, highlighting the possibility of integration with financial platforms, and preparations for corporate services are also underway in line with the authorities' policy of gradually promoting permission for corporate real-name accounts. In addition, issues such as volatility in the so-called "Kimchi premium" arising from differences with global prices, liquidity competition with overseas exchanges, and controversy over the fairness of token listing reviews remain ongoing.
Related Topics
- [[두나무]]
- [[비트코인]]
- [[가상자산이용자보호법]]
- [[빗썸]]
- [[블록체인]]