According to recent data released by lawmaker Kim Hee-gon, the four main cryptocurrency exchanges in South Korea have seen a dramatic drop in new users and transaction volume.
According to data compiled by Korea’s four main crypto exchanges — Upbit, Bithumb, Korbit, and CoinOne — the overall number of new users decreased from 1.65 million in April to 120,000 in June.
Over the same time span, the volume of monthly transactions processed by the four exchanges decreased from around US$286 billion to around US$87 billion.
Furthermore, June is the first month this year in which withdrawals outnumber deposits on all four crypto exchanges, indicating that many investors are abandoning cryptocurrencies.
Lee Jang-woo, adjunct professor at Hanyang University’s Global Entrepreneur Center, explained that the dip was caused by a drop in Bitcoin values and the recently enacted tough rules on crypto exchanges.