South Korea Crypto Volume Crashes Amid KOSDAQ Stock Market Meltdown

South Korea's cryptocurrency trading volume has hit a two-year low, dropping below 10 trillion won ($6.7 billion) for the first time since September 2023. The slump coincides with a dramatic collapse across the country's stock markets.

The five major fiat exchanges in South Korea - Upbit, Bithumb, Coinone, Korbit, and Gopax - saw their combined volume reach roughly 9.97 trillion won ($6.65 billion) in the week of July 3 to July 10. This marks a 25.75% drop from the prior week's total of 13.4 trillion won ($8.9 billion).

The decline deepens over time, with current volume about 43.5% below early June levels. This is the fifth consecutive weekly drop, reflecting a broad retreat in retail speculation nationwide.

Structural challenges add to the pressure, including tighter regulation and an operational error at Bithumb earlier this year that damaged trust among cautious retail investors.