Bitcoin Trades at the Highest Premium in South Korea in the Last Two Years

Bitcoin, according to blockchain data, has started trading at the highest premium in the last two years in South Korea, known as the “Kimchi Premium,” surpassing 10% compared to the spot price of Bitcoin.

What is Kimchi Premium? Kimchi Premium is a term that represents the price difference between the spot price of Bitcoin in other regions and its price in South Korea. South Korea has different rules for cryptocurrency prices compared to other cryptocurrency markets. To prevent the outflow of funds from the country, South Korea applies such additional measures.

On the other hand, foreign investors are not allowed to trade cryptocurrencies in South Korea. However, Korean investors who want to take advantage of arbitrage by buying cryptocurrencies from foreign exchanges may face high fines due to the country’s foreign exchange law.

Therefore, the limited cryptocurrency supply in South Korea, coupled with high local demand, often leads to prices being formed at a premium. According to the CryptoQuant report, the recent surge in Kimchi Premium reflects the buying pressure created by individual investors in the country.

Bitcoin reached 73,000 in Asia this week According to the price movements this week, Bitcoin reached the highest record level of 69,000 when tested against the US dollar on Upbit, South Korea’s largest cryptocurrency exchange, reaching 97 million Korean USD/KRW. This implies that the largest cryptocurrency reached 72,926 dollars in South Korea against the USD/KRW exchange rate.

As a result, the Kimchi premium is closely monitored as a significant data measuring cryptocurrency demand on the continent, attributed to South Korea being one of Asia’s largest cryptocurrency markets.

source: / prepared by Melisa Beğiç

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button