I’d like to introduce you to other domestic exchanges’ moves to counter Upbeat. As the enthusiasm for cryptocurrency investment has subsided in the wake of the recent month’s decline in Bitcoin, cryptocurrency exchanges are joining the ranks of lowering transaction fees. 바이낸스 거래소 사이트 Attention is focusing on whether exchanges, which earned more than KRW 4 trillion last year alone with transaction fees more than four times higher than those of major securities firms in Korea, will enter the competition to cut fees to boost the falling transaction amount.
According to the virtual currency industry on the 26th, Gopax has decided to hold a free transaction fee event at the same time as the won market opens on the 28th. Gopax has free Bitcoin (BTC) market fees since October last year when the won market was closed due to failure to obtain a real-name account, which it has decided to expand to the won market. On the 21st, Gopax was approved by the financial authorities for the won market and joined the ranks of five exchanges that can deposit and withdraw won.
It’s not just Gopax that started to free up transaction fees. Covit has also decided to eliminate transaction fees for “Maker” orders from the 21st. Maker order refers to a fixed price order other than a taker (market price) order. In addition, the maker’s order will be paid with KRW points of 0.05% of the signed quantity. In other words, if the transaction is completed, the exchange gives money to consumers.
Domestic cryptocurrency exchanges have been criticized for their higher fees than overseas exchanges and securities firms.
According to the office of Rep. Yoo Kyung-joon of the People’s Power, the average fee for the existing four major exchanges (Upbit, Bithumb, Coinone, and Covit) is 0.16%, up to 4.8 times more expensive than the global exchange Binance (0.065%) and Bitget (0.03%). It is four times higher than the average fee (0.04%) of major securities firms.
Upbit’s commission rate is 0.05%, more than three times the commission rate (0.015%) of Kiwoom Securities, the No. 1 securities company in Korea. It is significantly higher than the commission rate paid by most securities firms, including Marae Asset Securities and Korea Investment & Securities (0.014%).
Bithumb has a commission rate of up to 0.25% and Coinone of 0.2%. Bithumb can lower the commission rate by purchasing coupons, but the minimum commission rate is 0.04%, which is higher than that of securities firms. Coinone must have a monthly transaction amount of more than 3 billion won to receive free fee benefits.
The free declaration of fees is not irrelevant to the reduced transaction amount as Bitcoin continued to fall for about a month.
Source = unsplash
According to Coingeko, the market relay site, the average daily transaction amount of Upbit, the No. 1 domestic market share this month, was $3.3 billion, down more than 80% from $17.2 billion in May last year. The same goes for other exchanges. Considering that commission income accounts for 99.47% (3.685 trillion won) of Upbit sales in 2021, it will be difficult to expect the same profit as last year.
However, it remains to be seen whether the move to cut fees will spread throughout the exchange.
Source = Korea Economic Daily
Covit removed the transaction fee for the signing of the “maker,” but raised the commission rate from 0.15% to 0.2% for the “immediate signing” method. An official from Covit explained, “We are trying to provide incentives to make stable profits at the price set by ourselves instead of signing as soon as it flows mainly on single hits.” What a lame excuse. No, to encourage the fixed price fee, you could have eliminated the fixed price fee, but what are you talking about after raising the market price fee?
Bithumb is also in a position that there is no guarantee that the share will increase even if the commission rate is lowered, so there is no plan to cut the commission fee.
In fact, the domestic cryptocurrency exchange has never cut fees in the past few years.
Earnings from 24-hour customers, no real offline officeIf domestic cryptocurrency exchanges are making the same net profit as major banks, I think it is right to set more policies for users.
Considering the fact that Upbit Chairman Song Ji-hyung, who has 200 employees, has become richer than SK Telecom Chairman or Hyundai Motor Chairman by receiving only transaction fees, I think it is right to take social responsibility.