KRX to push crypto derivatives, aims to make Busan futures hub

At a ceremony in Busan marking the 30th anniversary of South Korea’s derivatives market, Korea Exchange Chairman Jeong Eun-bo announced KRX will introduce virtual asset derivatives and develop Busan into a global hub for crypto-linked futures trading.

Jeong told attendees the exchange will “actively push the introduction of virtual asset-related derivatives” and plans to attract international conferences and partner with local universities to train financial talent.

KRX said its derivatives market began with KOSPI 200 futures in May 1996 and now includes stock indexes, single-stock futures, currencies and government bonds. Average daily trading value recently reached a record 83 trillion won (about $60 billion). The exchange added after-hours trading last year to extend access for global investors.

South Korea’s regulatory framework for digital assets is still under development. A bill to apply foreign exchange regulations to crypto platforms passed the National Assembly’s Legislation and Judiciary Committee and awaits a full vote. The proposed law would require monitoring of cross-border digital asset transfers and create new categories for crypto transfer businesses.

Perpetual futures trading is large globally. Centralized exchanges cleared about $86.2 trillion in perpetual futures volume last year, while decentralized platforms handled roughly $6.7 trillion, a year-over-year increase of about 346 percent. On-chain data provider DeFiLlama shows on-chain perpetuals volume topped $21 billion over the past day and about $563 billion over the prior 30 days.

Traditional derivatives exchanges are adding crypto products. CME Group plans to launch Bitcoin volatility futures on June 1, pending regulatory approval, and will expand crypto trading hours to 24/7 starting May 29. Giovanni Vicioso, CME’s global head of crypto products, called the volatility futures “a critical new layer of risk management.” Cboe Global Markets introduced long-dated “continuous futures” contracts for Bitcoin and Ether with daily cash adjustments; Rob Hocking, Cboe’s global head of derivatives, noted those contracts target parts of the market with limited U.S. regulatory oversight.

In South Korea, five licensed domestic crypto exchanges operate after starting as technology startups. Up to 16 million South Koreans have traded crypto on local platforms. Average daily trading volumes and deposits in Korean won have declined recently. Securities firm Mirae Asset is reported to be close to completing a takeover of Korbit, the country’s oldest Bitcoin exchange.

Industry participants at recent conferences compared crypto derivatives with traditional finance products. Mike Harvey of Galaxy predicted offshore equity perpetuals trading could exceed crypto perpetuals within two to three years.

KRX said it will recruit conferences and academic partners to support the Busan hub and develop the workforce needed for crypto-linked futures trading.