Best Crypto Exchanges in Korea

Best Cryptocurrency Exchanges in Korea

Following an analysis of the 11 crypto exchanges available in Korea, we have identified the best overall options. Our evaluation considers multiple factors, including compliance with Financial Services Commission (FSC) guidelines, fees schedule, supported cryptocurrencies, KRW deposit options and features offered. Below is a comparison table of the top 5 platforms for Korean traders.

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1. KuCoin

KuCoin is the best cryptocurrency exchange in Korea, with over 30 million registered users globally and a daily trading volume surpassing $2 billion. It offers more than 700 digital assets for spot trading, margin trading, and futures with 100x leverage. The platform also features services such as staking, lending, and the KuCoin Spotlight platform for new project launches.

Its security measures are robust, including multi-factor authentication, advanced encryption technology, and cold wallet storage for user funds. KuCoin offers 24/7 customer support in multiple languages, and the interface can be used in Korean. The platform also has a KuCoin Shares (KCS) token, which provides holders with trading fee discounts and other benefits.

• Fees: Maker fees start at 0.1%, with discounts available for KCS token holders.
• Supported Assets: Over 700 cryptocurrencies.
• Regulation & Licensing: Licensed in multiple jurisdictions, not specifically regulated in Korea.
• KRW Deposit Methods: Bank transfers, credit cards, and third-party payment providers like Banxa.

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2. Gate.io

Gate.io is known for its vast collection of cryptocurrencies, offering more than 2,100 digital assets for trading. With a daily trading volume exceeding $8 billion and over 16 million users across Korea and 200 other countries, it provides a rich trading experience with spot trading, futures, and margin trading up to 100x leverage. 

The exchange has features like copy trading and bot trading, plus multiple earning opportunities through lending, borrowing and staking services. Its ecosystem is extensive, offering services like Gate Pay, a Visa debit card, an NFT marketplace, and cross-chain swaps through its Web3 services. 

• Fees: Maker fees starting at 0.1% and taker fees at 0.2%.
• Supported Assets: Over 2,100 digital assets.
• Regulation & Licensing: Not specifically regulated in Korea but available to residents.
• KRW Deposit Methods: Bank transfers and debit or credit cards.

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3. MEXC

MEXC is popular among Korean traders for its advanced futures trading options, offering up to 200x leverage. With over 10 million users worldwide and a daily trading volume of more than $2 billion, it provides a wide range of 800 cryptocurrencies and supports both spot and margin trading. It also features staking, yield farming, and an IEO launchpad for new crypto projects.

The platform is designed with security in mind, utilizing multi-layered protection mechanisms to safeguard user funds. MEXC's user interface is intuitive, and it offers a mobile app for seamless trading experiences. The exchange provides 24/7 customer support in multiple languages, including Korean.

• Fees: Competitive trading fees starting at 0.02% for futures.
• Supported Assets: Over 800 cryptocurrencies.
• Regulation & Licensing: Globally regulated and available in Korea.
• KRW Deposit Methods: Debit cards and credit cards.

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4. Upbit

Upbit is Korea’s leading cryptocurrency exchange based in Gangnam-gu. It is known for its high security standards and user-friendly platform. With over 9 million registered users and a daily trading volume exceeding $2 billion, Upbit supports over 200 cryptocurrencies and offers services such as spot trading, margin trading, and staking. 

The exchange is fully compliant with Korean regulations, ensuring a safe trading environment. Upbit also offers a mobile app for on-the-go trading and real-time market updates. The platform integrates with KakaoPay for seamless KRW deposits and withdrawals, further enhancing user convenience.

• Fees: Flat trading fee of 0.25%.
• Supported Assets: Over 200 cryptocurrencies.
• Regulation & Licensing: Fully regulated by Korean financial authorities and obtained the ISMS-P and ISO/IEC certification.
• KRW Deposit Methods: Direct bank transfers and KakaoPay.

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5. Bithumb

Bithumb is a Seoul-based cryptocurrency exchange in Korea, offering a diverse range of 290 digital assets and competitive trading fees. With over 6 million users and a daily trading volume of around $1 billion, it supports several investment services such as staking, lending, auto trading and bot trading. 

The exchange provides a user-friendly interface and comprehensive market analysis tools. Bithumb also offers an easy-to-use mobile app that can be used on Apple and Android devices. Customer support is available around the clock to assist with any issues or inquiries. Bithumb's compliance with Korean regulations ensures a safe trading environment.

• Fees: Trading fees start at 0.15%.
• Supported Assets: More than 290 cryptocurrencies.
• Regulation & Licensing: Fully regulated in Korea and obtained the Information Protection Management System (ISMS-P) certification.
• KRW Deposit Methods: Bank transfers, credit cards, and KakaoPay.

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Is Crypto Regulated in Korea?

Yes, cryptocurrency is legal and regulated in South Korea. The country's first comprehensive crypto regulatory framework, the Virtual Asset User Protection Act, has come into full effect. This legislation, fast-tracked following the collapses of Terra-Luna and FTX in 2022, focuses on investor protection and stringent operational requirements for digital asset exchanges. 

The Act, approved on July 18, 2023, mandates that exchanges must safekeep at least 80% of user deposits in cold wallets separate from their operational funds, delegate the custody of users' cash deposits to licensed local banks, and maintain cryptocurrency reserves that match customer deposits. Additionally, crypto service providers must enroll in adequate insurance or establish a reserve fund to prepare for potential hacks or liquidity crises.

The Financial Services Commission (FSC), Korea's top financial regulator, enforces compliance with these regulations, and non-compliant companies could face penalties or service suspensions. Alongside these measures, the FSC has launched a 24-hour surveillance network with local exchanges to monitor suspicious activities continuously. This initiative aims to enhance the security and transparency of the Korean cryptocurrency market.

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How is Crypto Taxed in Korea?

In Korea, cryptocurrency transactions are subject to taxation, and the National Tax Service (NTS) has outlined specific guidelines on how these transactions should be treated for tax purposes. Cryptocurrencies are regarded as assets subject to capital gains tax when sold or traded.

Profits from cryptocurrency activities are considered taxable income, especially for individuals who actively trade digital currencies. Regular traders or day traders must report their gains as part of their income, and these gains are taxed at their applicable income tax rates. The tax rate can vary based on the individual's total income, generally ranging from 6% to 45%.

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How to Buy Bitcoin in Korea

For Korean investors new to cryptocurrency, understanding the process of purchasing Bitcoin through a digital asset exchange is essential. Follow this guide to get started:

1. Create an Account: Visit a reputable Korean exchange and sign up for an account. Complete the verification process by providing a photo ID and, if necessary, a selfie or proof of address.
2. Deposit Korean Won (KRW): Navigate to the deposit section of your account, select KRW as your deposit currency, and enter the amount you want to transfer. Complete the transaction using a bank transfer, KakaoPay, or credit card.
3. Choose Bitcoin: In the trading section, search for Bitcoin (BTC). Select the KRW/BTC trading pair to view the current market rate. Review the trading options, including market and limit orders.
4. Execute the Trade: Click 'buy' or 'trade' to purchase Bitcoin. Enter the amount of Bitcoin you want to buy or the KRW amount you're willing to spend. Review the order details, including price and fees, and execute the trade.

This guide explains how users in Korea can begin trading digital currencies, covering every step from account setup to trade execution.

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Bottom Line

In conclusion, Korea's cryptocurrency market is thriving due to strong regulations set by the Financial Services Commission (FSC). Our analysis of the top five exchanges, KuCoin, Gate.io, MEXC, Upbit, and Bithumb, highlights the best platforms for Korean traders, each offering unique features and reliable KRW deposit methods.