South Korea’s largest cryptocurrency to fiat currency exchange has increased both in popularity and annual revenue this year, Finance Magnates reports. Bithumb has seen its revenues rise by over 171 percent, showcasing the feverish demand for cryptocurrency that sweeps South Korea.
Under the umbrella of its parent company, BTCKorea, it is part of a larger, publicly owned company. This means that the firm has to publish its annual earnings, including revenue and profit margins.
The most significant rise in activity came late last year, when most cryptocurrencies registered all-time highs. Neighboring countries clampdown on cryptocurrencies throughout the year, while South Korea didn’t.
China, in particular, announced its intention to ban cryptocurrency exchanges operating within the nation, pushing more to trade elsewhere however possible.
In that same quarter, BTCKorea saw its profits surge up to $420. While this number represents the parent companies’ returns, Bithumb itself brought in additional revenue of $90 million.
While these results are noteworthy, they were somewhat expected given the popularity cryptocurrencies have in the country. As Finance Magnates put it:
“The result is dramatic but not surprising given the popularity of the cryptocurrency industry in general and in South Korea in particular. Cryptocurrency exchanges in South Korea alone made $648 million in profit in 2017, an increase of more than 8,000 percent compared to 2016.”
This additional revenue is believed to stem from its external investments, in cryptocurrencies such as Ethereum, which have been gaining popularity. Some of the companies’ other investments include the rental of facilities to start-ups and established businesses in Seoul, the country’s capital.
The recent peaks and troughs for the value of respective cryptos have hit the exchange, however. And will likely be reflected in quarterly sheets to come.