South Korea’s major cryptocurrency exchanges have paid more than ₩120 billion in deposit interest over the past year, following the enactment of the Virtual Asset User Protection Act in July 2024. This regulation requires platforms to pay interest on users’ KRW balances, and growing competition among exchanges has significantly increased the total payout.
According to the Financial Supervisory Service, the five major exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—have collectively paid ₩120.26 billion in deposit interest since the regulation took effect. The payout has grown steadily, with approximately ₩40 billion paid in April alone. While initial rates were around 0.1% annually, most platforms now offer rates in the 2% range, in some cases exceeding those of traditional savings accounts.
As of the end of June, Upbit offered 2.1%, Bithumb 2.2%, Coinone 2.0%, Korbit 2.1%, and Gopax 1.3%. These rates reflect more than just profit-sharing—they represent an aggressive strategy to attract and retain user funds.
However, regulators have expressed concern that excessive competition could disrupt market discipline. To address this, the FSS has introduced a model guideline for calculating deposit interest rates. While high rates can benefit users, they also carry financial and operational risks for the exchanges offering them.
Deposit interest has quickly become a core competitive tool among exchanges. As this trend continues, striking a balance between attractive returns, sustainable operations, and regulatory compliance will be essential for long-term market stability.
