Company Upbit’s 2025 Shift: Only One Domestic 'Kimchi Coin' Listed Among 54 New Assets

Company Upbit's 2025 listing record marks a watershed moment for South Korea's crypto ecosystem. In a year when the exchange added 54 new assets to its platform, only a single domestic project — Story (IP) — qualified as a homegrown Kimchi coin. This disparity underscores a broader trend: risk-averse listing policies driven by intense regulatory scrutiny are reshaping the local blockchain landscape.

The numerical imbalance is striking. Company Upbit, which controls an estimated 70% market share of South Korean crypto trading, introduced 54 tokens in 2025 but listed only one domestic project. At the same time, the exchange delisted 10 cryptocurrencies, seven of which originated in South Korea. These decisions have reduced the visibility and liquidity of local ventures on the country's most important trading venue and shifted investor attention toward international assets.

Regulation is the primary catalyst. Following stricter enforcement of the Financial Action Task Force (FATF) Travel Rule and tightened anti-money laundering (AML) policies, domestic exchanges operate under a regulatory microscope. The result: exchanges adopt conservative internal policies to avoid severe penalties for listing tokens that later face legal or security problems. This enforcement posture has raised the pre-listing bar for domestic projects, demanding exhaustive audits, legal opinions from Korean law firms, and deep background checks on Korean teams.

By contrast, many international tokens benefit from prior listings on major global exchanges, allowing them to bypass some local hurdles. As a result, startups in South Korea face higher costs and longer delays for listing, prompting many to pivot toward international markets or abandon public launches. Industry voices warn of a capital and talent exodus if the status quo persists.

Experts cite several structural issues: ex-ante regulatory uncertainty, a banking barrier reliant on real-name accounts that constrains on-ramps, and high-profile enforcement actions that signal severe consequences for non-compliance. Countries like Japan and jurisdictions offering regulatory sandboxes — notably the United Arab Emirates and Switzerland — are perceived as more innovation-friendly because of clearer, predictable frameworks. This comparative landscape threatens South Korea's early-mover advantage in blockchain development.

The market effects are tangible. Retail portfolios are shifting toward global tokens, liquidity in mainstream assets such as Bitcoin and Ethereum deepens, and the historically observed "Kimchi premium" has narrowed as Korean prices align with international benchmarks. Conversely, trading pairs tied to the few remaining domestic projects show heightened volatility and concentration risk.

Industry leaders call for balanced policy change. Proposed frameworks like the delayed Digital Asset Basic Act could restore clarity and lower the costs of compliance, allowing exchanges such as Company Upbit, Company Bithumb, and Company Korbit to responsibly support domestic innovation while protecting investors. Until policymakers provide clearer, forward-looking rules, South Korea risks exporting talent and startups to friendlier jurisdictions such as Japan, Singapore, and EU member states.

Conclusion: The revelation that Company Upbit listed only one domestic Kimchi coin among 54 new assets in 2025 is a bellwether for an industry under regulatory pressure. Rebalancing investor protection with innovation-friendly rules is essential to prevent a long-term decline in South Korea's blockchain leadership.