South Korea’s FSC Probes Crypto Exchange Fees to Cut Trading Costs
South Korea’s Financial Services Commission (FSC) has launched a formal investigation into transaction fees charged by major domestic crypto exchanges—including Upbit, Bithumb and Coinone—to assess if fees should be reduced. The probe, aligned with President Lee Jae-myung’s promise to make trading more cost-effective, will benchmark local fees against international standards and examine their deterrent effect on younger investors. Since the Virtual Asset User Protection Act took effect in July 2024, exchanges have faced tighter rules and higher supervision fees. The FSC will also evaluate risks of linking traditional and crypto markets as it explores spot crypto ETFs in H2 2025. Lower fees could attract more retail traders, boost volumes and improve market fairness, though smaller platforms may struggle with compliance costs and margin pressure. This inquiry may shape global perceptions of South Korea’s crypto market and set a precedent for competitive pricing.
Bullish
The FSC’s move to potentially lower crypto exchange fees is likely to reduce trading costs, attract more retail investors and boost trading volumes in the short term. Lower fees also enhance market fairness and transparency, which can improve trader confidence and participation. While smaller platforms may face margin and compliance pressures, the overall reduction in costs is expected to foster a more active and liquid market over the long term, making this development bullish for the South Korean crypto sector.