The South Korean Won (KRW) became the most traded fiat currency against cryptocurrencies worldwide during the first quarter of 2024.

Zero-fee policies impact

According to recent research by Kaiko, with a trading volume worth more than $456 billion, the Won was the dominant currency on centralized crypto exchanges, overshadowing the $455 billion in U.S. dollar volume. 

The research company attributes the rising domination of the Won to the “fee war” among Korean crypto exchanges. Upbit, the major crypto exchange in the region, has taken over an 82% of the Korean crypto market since 2021.

“The improving macroeconomic environment and fierce competition among Korean exchanges has boosted trade volume on Korean markets which hit its highest level in more than two years in early March. In Q1 2024, the South Korean Won surpassed the US Dollar in terms of cumulative trade volume.”

Nevertheless, the more recent bull run spurred greater competition among competing exchanges, with both Bithumb and Korbit Exchange launching zero-fee campaigns in late 2023.

Even though Korbit’s market share was under 1 percent, Bithumb’s share tripled within several months after the zero-fee policy trading had been implemented in October 2023. 

Korean anticipated regulatory developments 

However, the research firm noted that volumes for the Korean Won fell in early April, expecting a significant rebound when spot Bitcoin and Ether exchange-traded funds (ETFs) were approved in Hong Kong. The financial regulator in Hong Kong has allegedly given the go-ahead for three spot Bitcoin ETFs, which are anticipated to be listed on the Hong Kong Stock Exchange soon.

Cumulative trading volume source: Kaiko