South Korea’s second-largest cryptocurrency exchange, Bithumb, has turned around impressively during 2024, and it now finds itself in the black, with operating profits of $89 million and a reported net profit of $110 million.
Just last year, in 2023, the exchange suffered a gigantic operating loss, so the profits this year mark an increase of more than half a billion dollars.
South Korea's second largest cryptocurrency Bithumb showed that its operating profit turned into a surplus last year, reaching $89 million. Bithumb's operating loss in 2023 was 14.8 billion won, and its net profit last year was 110 million US dollars, an increase of 565.8% over… https://t.co/VeYtT9mxih
— Wu Blockchain (@WuBlockchain) March 31, 2025
Those profits have cryptography aficionados curious about what’s happening at Bithumb and in the South Korean virtual asset market in general.
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Bithumb’s Financial Resurgence
In 2023, Bithumb had a troublesome year and presented an operating loss of 14.8 billion South Korean won. The company was in trouble, but it was part of a broadly downward-moving market for cryptocurrency firms, which had been under pressure from regulators and seen trading volume drop. Even in the midst of this turmoil, Bithumb undertook some restructuring and tried to run the firm with a little more efficiency and a little more focus on some key strategic initiatives. As a result of these efforts, the firm turned a significant profit in 2024 and presented an operating profit of $89 million. This is a significant turnaround and marks Bithumb’s resilience amid the tough conditions facing the cryptocurrency industry.
The net profit of $110 million illustrates just how much the exchange has recovered, amid the growth of its user base and trading activities. In no way does this reflect a downtrend in the cryptocurrency market. This was an extremely difficult year for many exchanges—the weakness in the cryptocurrency market presented several challenges to managing an exchange profitably. And yet here is Bithumb, a major player in the exchange world, and it looks to be healthy again.
Bithumb’s rebound marks a success not only for the company itself but also for the cryptocurrency trading space in South Korea. The exchange fell under suspicion and was for a time presumed to be insolvent. Despite Bithumb’s setbacks, it appears cryptocurrencies and platforms for trading them are accepted more and more within South Korea’s financial landscape.
Growing Cryptocurrency Adoption in South Korea
Bithumb’s recovery comes as South Korea experiences a surge in adopting cryptocurrencies. The use of virtual assets soared over the past few years, Seoul’s once virtual asset exchanges now promising a user base of 16.29 million. SBS said that number was reached this past February; it means about 32% of the population now interacts with some type of virtual asset exchange, and it places our virtual asset user base ahead of the traditional Korean stock market user base.
According to SBS, as of the end of February 2025, South Korea's virtual asset exchanges had a total of 16.29 million users, accounting for about 32% of the population and surpassing the 14.1 million stock market investors. The figure includes duplicated users, as it combines…
— Wu Blockchain (@WuBlockchain) March 30, 2025
The figure of 16.29 million users, which includes duplicated accounts across the five major cryptocurrency exchanges, reflects the increasing participation in the crypto space by South Koreans. The growing user base underscores the nation’s standing as one of the globe’s most crypto-fluent. Adoption proceeds apace, with more individuals—not just the under-30 set—seeking to invest in digital assets. They’re spurred by the prospect of potentially high returns and a burgeoning comprehension of blockchain technology.
The data also points to a substantial increase in the institutional interest in cryptocurrencies, with exchanges like Bithumb observing a surge in not just trading volumes but also retail and institutional investor engagement. The almost exponential growth of the user base during the past year has pushed exchanges to not only innovate their offerings but to also significantly enhance their security measures and expand their service range to a more diverse customer base.
More and more users are partaking in the cryptocurrency markets, reflecting a global trend where digital currencies are becoming ever more mainstream. South Korea is at the very tip of the adoption spear. And as the number of crypto investors here in South Korea surpasses that of stock market participants, it is becoming integral to our financial ecosystem.
Challenges Ahead for South Korea’s Crypto Exchanges
In spite of a favorable trend, the cryptocurrency exchanges in South Korea are still confronting regulatory challenges that would seem to threaten their long-term viability. The government has been dealing with the sector in a very conservatively pro-regulation manner in response to its worries about a number of issues: the potential for money laundering, the need to protect investors, and the overall worry that virtual currencies may be subject to market manipulation. The recent actions of the Financial Services Commission (FSC) in particular seem to put all of these worries into high relief.
In addition, the ongoing instability of the cryptocurrency market necessitates that exchanges remain nimble and quick to adjust to altering market conditions. While Bithumb might be having a strong recovery in 2024, the market could just as easily shift, and exchanges must be investing in infrastructure, security, and innovation to maintain their competitive edge.
In spite of these difficulties, the overall cryptocurrency market in South Korea stays strong, and the surging user numbers point to its prospect as a serious player in the global digital asset arena. Embracing cryptocurrency as an alternative form of investment, a fast-increasing number of South Koreans are calling for exchanges like Bithumb that are the very picture of secure, reliable, and innovative. Despite the recent turmoil in the crypto markets, user numbers for Bithumb reached a record high in 2022.
Conclusion: A Positive Outlook for Bithumb and the Korean Crypto Market
Bithumb’s financial turnaround in 2024 is a promising sign for the company and the broader South Korean cryptocurrency market. The exchange’s substantial recovery from a significant loss to an operating profit of $89 million underscores its resilience and adaptability in a swiftly changing market. Meanwhile, as cryptocurrency adoption in South Korea rises apace—with more than 16 million users trading virtual assets—the outlook for Bithumb seems increasingly rosy.
The ongoing regulatory issues and market volatility will keep testing the flexibility of South Korea’s crypto exchanges. Yet—and it’s a big yet—the altitude of the country and the incipient quantity still suggest otherwise. Here, from my perch, the perceived quantity keeps coming, and the inbound interest remains ever-increasing.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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