The Virtual Asset User Protection Act (VAUPA), effective Nov. 19 in South Korea, has spurred competition for deposit interest rates among virtual asset exchanges. On the 20th, the top five KRW-market crypto exchanges - Upbit, Bithumb, Coinone, Korbit, and GoPax - set their deposit interest rates with partner banks. Korbit offered the highest rate at 2.5% per year, up from 1.5% after Upbit and Bithumb raised their rates to 2%. Upbit, with $6 trillion in deposits, set a 2.1% rate, up from 1.3%. Bithumb increased its rate to 2.2% after initially announcing 2.0%. Coinone set a 1.0% rate, while GoPax offered 1.3%. VAUPA requires user deposits to be managed by commercial banks, mandating exchanges to pay interest on deposits. Previously, paying such fees was illegal. Upbit partners with K Bank, Bithumb with NH Bank, Coinone with Kakao Bank, Korbit with Shinhan Bank, and GoPax with Jeonbuk Bank. CoinGecko reports Upbit holds over 70% of the domestic crypto exchange market, Bithumb 25%, and the rest less than 1%.

Visit our official English blog to read more about "VAUPA Sparks Competitive Interest Rates Among South Korean Crypto Exchanges"