Upbit Trading Volume Surges 273% as Korean Investors Return
Trading activity on South Korea’s largest cryptocurrency exchange has surged as Bitcoin’s latest rally draws retail investors back into digital assets after months of weaker participation. Upbit processed about $1.84 billion in crypto transactions over 24 hours on Aug. 21, according to CoinGecko data. That represented a 273% increase and marked the exchange’s strongest daily trading volume since mid March 2026. XRP led activity with roughly $418.9 million in trades, followed by Bitcoin, USDT and Ether. Key Takeaways Upbit and Bithumb See Sharp Trading Rebound The jump was not limited to Upbit. Bithumb, South Korea’s second largest crypto exchange, recorded about $934.9 million in 24 hour volume, up roughly 132.9%. XRP was also the most actively traded asset there. That broader increase strengthens the case that the move reflects renewed local participation rather than activity isolated to a single platform. South Korea has long been one of the world’s most active retail crypto markets, particularly for altcoin trading. Large spikes in Korean exchange volumes are closely watched because local traders can add significant momentum when global crypto markets begin moving higher. The latest surge comes as Bitcoin rebounded strongly and helped lift sentiment across the broader market. Korean Investors Had Shifted Toward Stocks Crypto activity in South Korea had weakened significantly earlier in 2026 as investors moved toward domestic equities. The KOSPI rallied to record levels during the year, supported by strong demand for semiconductor companies including Samsung Electronics and SK Hynix as enthusiasm around artificial intelligence and memory chips intensified. That shift showed up in exchange earnings. Upbit and Bithumb each reported operating revenue declines of roughly 50% in the first half of 2026. Upbit’s net profit fell 74%, while Bithumb moved from profitability to a net loss. The latest crypto rally is now testing whether some of that capital is beginning to return. Min Jung, associate researcher at Presto Research, said the recent activity is encouraging but still too early to define as a major rotation. “While it’s too early to call this a rotation given it’s only been two days, we’d expect a much larger influx of capital into crypto if the rally holds.” Jung added that investors may increasingly view crypto as a possible catch-up trade after the strong performance already recorded in South Korean equities. Korean Retail Is “Return-Chasing” One of the more important features of the South Korean market is the speed at which retail capital can move between asset classes. Jung described Korean retail investors as “return-chasing” rather than “asset-loyal,” suggesting traders are more likely to follow whichever market is producing stronger returns. That behavior helps explain why crypto activity can recover quickly once Bitcoin begins moving. Jung said the likely sequence is for international crypto momentum to draw Korean investors back into the market, after which local capital could strengthen the rally further. “Korean capital tends to follow a rally rather than start one, so the more likely path is that global momentum pulls Korean money in, which then amplifies the move.” XRP’s position as the top traded asset on both Upbit and Bithumb also shows that the renewed appetite is not confined to Bitcoin. South Korean traders have historically been active in large-cap altcoins, meaning stronger retail participation could broaden into other assets if market confidence continues improving. What Comes Next The immediate question is whether the jump in volume can be sustained. A single session of unusually strong activity can be driven by short-term momentum, arbitrage or traders reacting to a sudden price move. Several consecutive days of elevated turnover would provide stronger evidence that fresh capital is returning to South Korea’s crypto market. The next signals to watch are continued Upbit and Bithumb volume, XRP and altcoin turnover, and whether Bitcoin can maintain its recent momentum. Conclusion Upbit’s 273% increase in daily trading volume is one of the clearest signs yet that South Korean retail interest is returning as crypto prices recover. The simultaneous rise in Bithumb activity adds weight to that signal, while XRP’s dominance highlights the strong altcoin appetite that has historically characterized the Korean market. Still, the move remains an early indication rather than confirmation of a lasting shift. If Bitcoin holds its gains and Korean exchange volumes stay elevated across multiple sessions, the latest spike could mark the beginning of a broader return of South Korean capital to crypto.
South Korea Bill Targets Unregistered Crypto Firms
South Korean lawmakers are seeking to give the country’s Financial Intelligence Unit broader powers to investigate unregistered cryptocurrency businesses, particularly overseas platforms serving Korean users without local authorization. The proposal, introduced by People Power Party lawmaker Eom Tae young and nine co sponsors, would expand the FIU’s role beyond identifying suspected violations and referring cases to police. If approved by the National Assembly, the agency could investigate suspected illegal operators directly before deciding whether to file complaints, request criminal probes or hand information to other authorities. Key Takeaways FIU Could Gain Direct Investigative Powers The bill seeks to amend South Korea’s Act on Reporting and Using Specified Financial Transaction Information, which forms part of the country’s framework for supervising virtual asset service providers. Under the proposed amendment, individuals would be allowed to report suspected legal violations directly to the FIU. The agency could then examine the allegations, conduct analysis and decide what enforcement action is appropriate. That could include filing a formal complaint, requesting a criminal investigation or passing information to investigators. The change would mark a significant expansion of the FIU’s current enforcement role. Today, the regulator can identify crypto businesses suspected of operating without registration, but it largely depends on police and other authorities to pursue cases. South Korean law already requires cryptocurrency businesses that actively target domestic users to register with the FIU, including foreign companies that provide services to Korean customers. The regulator said in June that 28 virtual asset service providers were registered in the country and that roughly 40 suspected illegal operators had been referred to investigative authorities. Overseas Operators Have Complicated Enforcement The bill follows concerns that the existing referral system has struggled to deal with foreign crypto companies. According to Yonhap, police suspended investigations or preliminary inquiries into 23 of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025. Many of the companies and individuals involved were reportedly based outside South Korea. That creates practical problems for local enforcement agencies, particularly when suspects, business infrastructure or records are located in another jurisdiction. Supporters of the proposal argue that allowing the FIU to investigate earlier in the process could help authorities gather stronger evidence before police or prosecutors become involved. The bill’s stated rationale also points to the risk that unregistered operators can be used for money laundering, unauthorized currency exchange and cross border remittance activity. Some foreign platforms have allegedly reached Korean customers through Telegram, KakaoTalk, YouTube and online communities rather than establishing a formal local presence. South Korea Keeps Tightening Crypto Oversight The proposal fits into a wider regulatory push aimed at strengthening supervision of both domestic exchanges and cross border digital asset activity. South Korea has already introduced or considered tougher reporting obligations for overseas-linked crypto transfers and suspicious transactions. New foreign exchange requirements are also expected to add compliance obligations for companies involved in international crypto transfers. At the same time, the FIU has faced legal challenges over some of its enforcement actions against registered exchanges. Courts have reviewed sanctions involving major operators such as Dunamu, the company behind Upbit, as well as Bithumb and Coinone. Those disputes show that regulators are also being tested on how far their existing authority can extend. The latest bill appears designed to address a different weakness: unregistered businesses that remain outside the formal supervisory framework altogether. Conclusion South Korea’s proposed FIU reform would give regulators a more direct route to investigate crypto companies suspected of operating without authorization. The need for stronger enforcement has become more pressing as overseas platforms continue to reach Korean users while remaining difficult for domestic police to investigate. The fact that 23 of 25 FIU referrals were suspended or halted highlights the limits of the current system. Still, the proposal is not yet law. It must pass through the National Assembly, and its final wording could change during the legislative process. If adopted, the measure would give the FIU a much larger role in the early stages of crypto enforcement and could make it harder for unregistered foreign platforms to serve South Korean customers without facing closer scrutiny.
Trump Says CFTC Working to Bring Hyperliquid to US
President Donald Trump says US regulators are working on a path that could allow Hyperliquid to enter the American market under a compliant legal structure, putting fresh attention on one of crypto’s largest onchain perpetual futures platforms. Trump made the remarks on Wednesday during a White House meeting attended by crypto executives, financial market leaders and senior regulators. He specifically referred to Commodity Futures Trading Commission Chair Michael Selig as the official leading the effort. “I understand that Mike is also working to bring Hyperliquid into the United States in a fully compliant and legal fashion. Working very hard on that.” The comments triggered a strong market reaction, although no formal approval or launch plan has been announced. Key Takeaways Hyperliquid Could Gain a Path Into the US Derivatives Market Hyperliquid has become one of the most closely watched decentralized trading platforms in crypto because of its focus on perpetual futures. Perpetual futures allow traders to speculate on the price of an asset without owning it directly and without dealing with a fixed contract expiry date. These products have become a major source of trading volume across offshore crypto markets. Hyperliquid currently restricts US users, meaning any move into the country would require the platform to operate within CFTC rules. Trump’s comments suggest regulators are exploring how that could happen. However, the remarks should not be interpreted as regulatory approval. The CFTC has not published any formal action involving Hyperliquid, and neither the agency nor Hyperliquid has disclosed a proposed US structure. Selig has previously expressed support for creating a regulatory pathway for onchain markets. Speaking earlier this year, he said blockchain based trading systems such as Hyperliquid could reshape financial markets and that regulators should find ways to bring those platforms into the US while requiring compliance. That position appears consistent with Trump’s latest comments. HYPE Rallies as Traders Price in US Access Hyperliquid’s native token, HYPE, surged following the White House remarks. CoinGecko data showed HYPE trading around $69.11 at 03:11 UTC on Thursday, up 18.41% over the previous 24 hours. Other reports showed the token briefly trading above $72 during the rally. Nasdaq listed Hyperliquid Strategies reportedly gained more than 30% during Wednesday’s session, while exchange traded products linked to HYPE also moved higher. The strong response reflects how much value traders are placing on potential access to the US derivatives market. The United States remains one of the world’s largest markets for regulated futures and institutional trading. A compliant US pathway could significantly expand Hyperliquid’s potential user base and increase competition with established trading venues. Regulatory Questions Remain Unanswered Bringing Hyperliquid into the US would not be straightforward. Its current structure relies heavily on onchain infrastructure and noncustodial trading, while US derivatives markets operate under strict registration, surveillance and compliance requirements. Any regulatory pathway may need to address identity verification, market manipulation controls, sanctions screening, leverage restrictions and the legal responsibilities of entities connected to the protocol. Traditional exchanges have also raised concerns about offshore perpetual markets. CME Group and Intercontinental Exchange have reportedly pushed regulators to examine platforms such as Hyperliquid more closely over concerns about price manipulation and regulatory gaps. Those concerns could influence how the CFTC designs any future framework. CFTC Meeting Could Offer More Clarity Attention now turns to the CFTC’s Innovation Advisory Committee, which is holding its inaugural meeting on Thursday at 1 PM EST. The published agenda includes crypto assets, artificial intelligence and prediction markets, although Hyperliquid is not specifically listed. Selig said the committee will examine how emerging technologies and financial products are reshaping markets. “America has long been the global hub of financial innovation.” The meeting could provide more insight into how the CFTC intends to approach decentralized derivatives platforms, although there is no guarantee that Hyperliquid will be discussed directly. Conclusion Trump’s remarks have raised expectations that Hyperliquid could eventually gain regulated access to the US market, but the process remains at an early stage. The CFTC has not approved Hyperliquid, disclosed a compliance framework or provided a launch timeline. For now, the clearest signal is political and regulatory interest in bringing more onchain derivatives activity under US supervision. For Hyperliquid, a successful pathway into the United States could open a major new market. The next important development will be whether Selig and the CFTC provide concrete details on what compliance would actually require.