Summary
Cryptocurrency is legal in South Korea, with strict regulations in place. Popular payment methods include bank transfers and credit cards. The Korean won (KRW) is widely supported on major exchanges. The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are the key regulatory bodies overseeing crypto activities. The Special Financial Transactions Information Act governs cryptocurrency transactions and exchanges in the country. Here are the best crypto exchanges in South Korea:
Best Crypto Exchanges in South Korea
This article provides an in-depth analysis of the top cryptocurrency exchanges available to South Korean traders and investors. We’ll examine key factors such as supported cryptocurrencies, trading fees, deposit methods, and KYC requirements. For South Korean users, exchanges supporting the Korean won (KRW) and offering bank transfer options are particularly advantageous.
1. Bybit
Users:
40m
Free Demo:
Mobile App:
Bonus
$30,000
Cryptos:
600+
Leverage:
100x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.055%
Pros
- Low fees
- 600+ supported crypto assets
- 100x leverage and deep liquidity
- Advanced order types and additional features
- Great 24/7 customer support
- Automated copy trading
Cons
- Regulatory uncertainty in Europe and USA
- May be confusing for beginners
- Cryptocurrency investments carry high risks
Overview
Bybit stands out as one of the most advanced crypto exchanges with deep liquidity and low fees. Bybit users can trade Spot, Futures, Options, NFTs, and even Inscriptions. Additionally, Bybit offers copy trading and bot trading to automate your income streams. Bybit copy trading is one of the best in the crypto industry.
Where Bybit excels is its derivatives platform with 320+ perpetual futures contracts and up to 100x leverage. With advanced order types such as TWAP or Iceberg orders, Bybit caters to experienced traders seeking the best options.
On the spot market, Bybit supports over 500 cryptos and up to 10x margin, making Bybit a versatile crypto exchange.
With low fees of 0.1% maker and 0.1% taker for spot trading and 0.02% maker and 0.055% taker for futures trading, Bybit has highly competitive fees. To top it all off, Bybit offers fee discounts based on your 30-day trading volume. The more you trade, the more you save.
2. Binance
Users:
200m
Free Demo:
Mobile App:
Bonus:
$100
Cryptos:
400+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.05%
Pros
- Most comprehensive crypto exchange
- Most advanced features and products
- 24/7 customer support
- 400+ cryptocurrencies
- Reputable with over 200 million users
- Best liquidity
Cons
- Not beginner friendly
- Restricted in many regions due to regulations
- EU traders must use BNFCR for futures trading
Overview
Reaching over 200 million registered users in 2024, Binance is by far the largest crypto exchange in the world. The platform is incredibly comprehensive, offering crypto traders all the tools they need to make a profit in the crypto market.
With over 400 cryptocurrencies to trade, leverage of up to 125x, directly integrated charts from TradingView with tons of technical analysis tools, and many more features, Binance has secured its spot as one of the best crypto exchanges.
Binance offers a wide variety of products, including spot, margin, futures, and options trading, staking, lending, P2P, automated bot trading, copy trading, and even an NFT marketplace. It is safe to say that crypto geeks will find everything they are looking for on Binance.
The trading fees on Binance are very affordable. Binance charges 0.1% trading fees on the spot market (makers and takers alike), which is the industry standard. Where Binance excels is the futures market with fees of only 0.02% for makers and 0.05% for takers.
3. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
300x
Spot Fees:
0.05%
Futures Fees:
0.01%/0.04%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 300x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 300x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
4. Upbit
Users:
8M
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
216+
Leverage:
Not Supported
Spot Fees:
0.2%/0.2%
Futures Fees:
Not Supported
Pros
- Fast and secure trading
- High liquidity
- Low trading fees
- Beginner-friendly
- Responsive customer support
Cons
- Exchange frequently targeted by hack attempts
- No leverage trading
Upbit Overview
Upbit is South Korea’s largest cryptocurrency exchange, ranking 4th or 5th globally among top exchanges. With 8 million users, Upbit offers a mobile app and implements KYC procedures for regulatory compliance. The platform charges a 0.2% fee for both makers and takers in spot trading.
Upbit provides high liquidity and a secure trading environment suitable for beginners. The exchange offers helpful customer support and maintains low trading fees. However, Upbit does not support futures or leverage trading, which may limit options for advanced traders.
A significant concern for Upbit is the increasing frequency of hack attempts year-over-year, potentially posing security risks. Despite this, the exchange continues to provide a fast trading experience.
Upbit does not offer a demo account for practice trading. The platform’s primary focus on the South Korean market may limit its appeal to international traders, although it remains a dominant player in its home market.
5. Bitunix
Users:
2m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
200+
Leverage:
Not Supported
Spot Fees:
0.15%/0.25%
Futures Fees:
Not Supported
Pros
- 350+ assets
- Deep liquidity & Low Fees
- Up to 100x leverage
- No KYC required
- Advanced order types
Cons
- No staking products
- Relatively new platform
- No Demo trading offered
Bitunix Overview
Bitunix is an exchange that is recognized worldwide with 1+ million users around the globe. The exchange is also commended for its standard fees. It charges a minimal fee of 0.06% and 0.02% taker and maker for futures trading, and a 0.1% maker/taker fee for spot trading.
What makes Bitunix a great place for traders is its accessibility due to its no KYC policy. Users from all around the world can sign up on the platform without having to verify their identity.
With 300+ cryptocurrencies for users to select from, Bitunix provides a user-friendly platform with a good number of products and services available. The platform is also widely celebrated for its trading interface for both spot and futures traders, with up to 125x leverage on trades. It also offers USDT-margined perpetual futures as the major derivatives trading product.
The exchange offers several payment methods for customers, such as credit/debit cards, Fatpay, Coinify, Apple Pay, and bank transfers. Additionally, there are welcome bonuses available to new users on Butunix up to $5,500 based on trading activity.
Is Crypto Legal and Regulated in South Korea?
Cryptocurrency is legal in South Korea, but it operates under strict regulations. The primary regulatory bodies overseeing cryptocurrency activities in the country are the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
The legal framework for cryptocurrencies in South Korea is primarily governed by the Special Financial Transactions Information Act, which came into effect in March 2021. This act requires all cryptocurrency exchanges operating in South Korea to register with the FSC and implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Additionally, the Virtual Asset User Protection Act, passed in June 2023, aims to enhance investor protection and market stability. This law mandates cryptocurrency exchanges to maintain separate management of customer deposits and sets stricter operational standards.
It’s important to note that while cryptocurrencies are legal, initial coin offerings (ICOs) have been banned in South Korea since 2017. The government continues to refine its regulatory approach to balance innovation with investor protection in the rapidly evolving cryptocurrency sector.
Is Crypto Taxable in South Korea?
Cryptocurrency taxation in South Korea has been a subject of ongoing legislative debate and revision. As of 2023, the implementation of a comprehensive cryptocurrency tax framework has been postponed to 2025. According to the National Tax Service (NTS), the proposed tax structure includes:
- A 20% tax on cryptocurrency gains exceeding 2.5 million won (approximately $1,900) per year.
- Cryptocurrency inheritances and gifts will be subject to taxation based on the market value at the time of transfer.
It’s crucial to note that while this specific cryptocurrency tax law is pending implementation, other existing tax laws may still apply to certain cryptocurrency transactions. For instance, if cryptocurrencies are used for commercial purposes or as a means of payment, they could potentially fall under existing income tax or value-added tax regulations.
The South Korean government continues to refine its approach to cryptocurrency taxation, balancing the need for revenue generation with the promotion of technological innovation in the financial sector.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in South Korea.
How to Buy Crypto in South Korea
Purchasing cryptocurrency in South Korea involves a straightforward process, but it’s essential to follow the necessary steps to ensure compliance with local regulations. We recommend using Bybit for its user-friendly interface, competitive fees, and support for the Korean won (KRW).
Here’s a step-by-step guide to buying cryptocurrencies like Bitcoin, Ethereum, or other popular assets in South Korea:
- Choose a Crypto Exchange: Select a trusted exchange that accepts KRW and adheres to South Korean regulations. Make sure to check the available payment methods and KYC requirements for the platform.
- Create an Account and Verify Your Identity: Sign up on the chosen exchange. Complete the KYC process by submitting the necessary documents, which usually include a government-issued ID and proof of your address.
- Add Funds: Deposit KRW into your exchange account. Common payment methods in South Korea include bank transfers, credit cards, and sometimes mobile payment options like Kakao Pay.
- Select Your Cryptocurrency: Decide on the cryptocurrency you want to buy. Popular choices are Bitcoin (BTC), Ethereum (ETH), and stablecoins such as Tether (USDT).
- Execute Your Trade: Place an order to purchase your chosen cryptocurrency. You can generally select between market orders (executed instantly at the current price) or limit orders (executed at a predetermined price).
- Secure Your Funds: After making your purchase, consider moving your cryptocurrencies to a secure wallet. Hardware wallets offer maximum security, while software wallets provide easier access.
Stay updated on the latest regulations and market trends when trading cryptocurrencies in South Korea. Always maintain good security practices to safeguard your digital assets.
Best Crypto Wallets in South Korea
Choosing a secure and easy-to-use crypto wallet is essential for managing your digital assets in South Korea. Below are some of the top wallet options available for South Korean users:
Hardware Wallets:
- Ledger Nano X/S: Provides excellent security for long-term asset storage.
- Trezor Model T/One: Known for its strong security features and easy-to-use interface.
Software Wallets:
- Trust Wallet: A mobile wallet that supports a variety of cryptocurrencies and is highly versatile.
- Exodus: Available on both desktop and mobile, this wallet has a user-friendly interface and built-in exchange functionality.
- MetaMask: A popular choice for Ethereum and ERC-20 tokens, available as a browser extension and mobile app.
Local South Korean Wallets:
- Keypair: Developed by Dunamu, the operator of the Upbit exchange, it integrates with local services.
- Dcent Wallet: A hardware wallet created by IoTrust in South Korea, designed to comply with local regulations.
When selecting a wallet, consider factors such as security, supported cryptocurrencies, ease of use, and compatibility with local South Korean exchanges and services. For large amounts, it’s advisable to use a hardware wallet for long-term storage and a software wallet for daily transactions.
Always ensure you download wallets from official sources and follow best practices for securing private keys and recovery phrases.
Bottom Line
For South Korean crypto enthusiasts, selecting the right exchange is crucial. Our top recommendations for the best crypto exchanges in South Korea are Bybit and Binance. Bybit offers a user-friendly interface, competitive fees, and strong security measures. Binance provides a wide range of cryptocurrencies and advanced trading features. Both platforms support KRW and comply with local regulations, making them excellent choices for South Korean traders seeking reliable and efficient cryptocurrency exchange services.
