Workers at South Korea’s Upbit exchange are now earning more than their counterparts at some of the country’s leading commercial banks.
According to recent data reporting of News1, employees at the cryptocurrency platform Upbit, operated by Dunamu, have seen their average salaries more than double over the past year. This increase highlights a significant shift in compensation trends within South Korea’s financial sector.
Upbit Sees Impressive Financial Growth
Upbit has demonstrated strong financial performance, as seen by the noteworthy rise in staff salaries and bonuses. The average wage for Dunamu workers in the first half of 2024 was 133.73 million South Korean won, or roughly $99,500. This is a 2.2-fold increase over the 59.44 million won ($44,000) recorded during the same period last year, indicating a remarkable surge.
Comparatively, according to data from the Financial Supervisory Service (FSS), the average wage for staff members at significant South Korean banks such as KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank is approximately 116 million won, or roughly $86,700. As a result, Upbit employees make significantly more money than those in conventional banking positions.
Did Bitcoin ETFs Play a Big Role?
The rise in salaries at Upbit is correlated with notable changes in the Bitcoin space. Upbit had a $15 billion peak trading volume on March 5, 2024.
The record high price of $69,200 that Bitcoin reached due to large investments in US-based spot Bitcoin ETFs was the primary driver of this spike. An important contributing factor has been the current positive market conditions.
According to experts, the positive trajectory of the cryptocurrency market—especially once Bitcoin spot ETFs were introduced in the US—has been instrumental in improving the financial results of local exchanges. Dunamu has been able to greatly raise executive and staff salaries as a result.
Dunamu’s consolidated sales increased by 60.5% from the previous quarter to 531.1 billion won, or over $400 million, in the first quarter of 2024. The company has been able to provide its employees with good performance bonuses because of its remarkable increase in operational profits.
Why is This Important?
The rising salaries and bonuses for Upbit staff members highlight the wider effects of the cryptocurrency market’s growth on South Korea’s financial system.
In addition to changing the possibility for profit in the cryptocurrency space, the growing interest in digital assets has brought attention to the changing relationship between established financial institutions and newer financial technology.
In conclusion, the salary difference between staff of traditional banks and cryptocurrency exchanges is indicative of the market’s explosive growth and profitability.
The financial compensation environment across multiple sectors is expected to be increasingly influenced by these trends as the digital asset market continues to evolve.