Upbit, South Korea's largest crypto exchange, added 54 new assets in 2025, but only one was a domestically developed project. Meanwhile, the platform maintains a strong market position, controlling about 70% of the country's trading volume. This ratio of new international to local listings reflects a significant shift in the exchange's policy under regulatory pressure.
What Is a 'Kimchi Coin' and Why Are They Important?
The term "Kimchi coin" refers to crypto projects created by Korean teams and targeted at the local market. During the peak period of 2017–2018, such projects often attracted investor attention and had a noticeable impact on local trading sentiment. Upbit, as the dominant platform, historically served as the main gateway for Korean projects to access mass investment.
Upbit Listing Statistics in 2025
The exchange's activity in 2025 shows a clear bias toward international assets, evident in the ratio of new and delisted projects. As a result, the presence of local projects on the platform has significantly narrowed, altering the accessibility of Korean initiatives for retail and institutional investors.
- Of the 54 new listings, only one was a Korean project — Story (IP), representing a "Kimchi coin."
- In 2025, Upbit delisted ten cryptocurrencies; seven of these were of South Korean origin.
- The combination of few new local listings and targeted delistings reduced the visibility of Korean startups on the country's main trading platform.
Regulatory Reasons Behind Upbit's Policy Change
The primary catalyst for the more cautious listing policy is increased oversight from authorities and regulatory pressure. The article highlights the impact of transaction data transfer rules (Travel Rule) and stricter anti-money laundering (AML) requirements, which have placed exchanges under a "regulatory microscope." Exchanges now risk heavy fines for listing problematic assets, encouraging a more cautious internal approach.
Consequently, pre-listing checks for Korean projects have become more stringent and costly: team analysis, tokenomics, and declared functionalities undergo closer scrutiny than for some international projects with an established trading history.
Expert Opinions on Innovation Impacts
The article cites an industry observer who believes this conservative stance may lead to a "brain drain" of capital and talent: investors and developers opt for more favorable jurisdictions to launch and grow. Developers compare the current situation to the more active 2017–2018 period when local projects played a more prominent market role.
Without a transparent and supportive regulatory framework, young teams are forced to seek alternative markets or adapt projects for an international audience, reducing the number of startups primarily focused on the Korean ecosystem.
Implications for Investors and the Market
For investors and liquidity, this means capital is shifting toward international tokens, making local pairs more concentrated and volatile. Liquidity depth for major global assets on Korean platforms has increased, aligning local prices more closely with international quotes.
The narrowing of the so-called "Kimchi premium" is directly linked to increased global asset liquidity and harmonized trading conditions. This trend intersects with capital outflows and changing investment preferences; more on capital movements can be found in the review on capital outflow and the article about foreign crypto stock purchases.
Why This Matters
If you mine or evaluate the market as a buyer or holder, listing changes primarily affect the availability of local projects and the structure of trading pairs on Korean platforms. With fewer local tokens, investors and projects find it harder to rely on domestic exchanges as a launchpad for liquidity and demand.
For miners in Russia, this means local listings and their fate on Korean exchanges do not directly change mining technical conditions but can influence demand and prices for some regionally oriented tokens. The shrinking "Kimchi premium" also reduces local arbitrage opportunities between Korean and international platforms.
What to Do?
For miners with any number of devices (from one to a thousand), simple risk and liquidity management practices are helpful. First, monitor listing and delisting announcements on major exchanges — losing a listing can sharply reduce a token's availability and price.
Second, diversify cryptocurrency holdings and keep critical assets in wallets under your control (cold wallets) if you do not plan active trading. Also, maintain up-to-date protection for your equipment and wallets: update software, use strong passwords, and enable two-factor authentication.
Finally, stay informed about regulatory news and industry reviews, as they directly affect exchange listing policies and local project accessibility; if needed, follow trend analyses, such as those on domestic ICOs and legislative initiatives discussed in the reviews about domestic ICO possibilities.
FAQ
What is a "Kimchi coin"?
"Kimchi coin" is a colloquial term for cryptocurrencies developed within South Korea and targeted at the local market. These projects previously played a notable role in local market cycles.
Why is Upbit's listing policy important for Korea?
Upbit controls a significant share of the Korean market (approximately 70%), so its listing decisions determine which assets gain access to the country's mass investor audience.
Which regulations influence this policy?
Key factors include the Travel Rule requirements and tightened anti-money laundering (AML) regulations. Under regulatory pressure, exchanges tighten internal procedures to minimize risks of fines and reputational damage.
Has the "Kimchi premium" disappeared?
The article notes that the "Kimchi premium" has significantly narrowed: as liquidity evens out and international assets play a larger role, the local premium has become smaller and more stable.
Are other exchanges following Upbit's example?
Yes, other major Korean platforms also adopt cautious listing approaches, resulting in the sector overall shifting toward more conservative criteria.