Tuesday, May 11, 2021

Bitcoin trades at a premium of $65,882 in South Korea.

The Takeaway:

Bitcoin is being sold at a premium on local exchanges like Bithumb and Korbit, while the leading cryptocurrency witnessed a slump worldwide.

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The cryptocurrency market has had a turbulent week, with the leading cryptocurrency Bitcoin slumping by 14% on the global crypto markets. This slide saw Bitcoin trading at $52,144 earlier today. But this obvious volatility seems to be swinging anti-clockwise in the South Korean crypto market as Bitcoin is being sold at a premium on local exchanges like Bithumb and Korbit. According to local reports, BTC is changing hands at as much as $65,882 on Korean crypto exchanges.

 

Bitcoin is selling at an 18.6% premium in South Korea. 

Head of business development in Asia for decentralized protocol, Maker Doo Wan Nam, notes that the growing restrictions on money circulation in the local economy play a role in the disparity in Bitcoin prices on local crypto exchanges. In the same period, 1 BTC to the US dollars was trading for $55,553 after the market rallied on global crypto exchanges Binance and Coinbase. But the premium price at which it is traded in South Korea saw an 18.6% difference in the same timeframe.

 

Stablecoins pegged to the US dollar are also selling at a high premium. 

Stablecoins pegged to the US dollar are also selling with a high premium on few South Korean crypto exchanges that offer them. On Probit, USDT is trading for as high as $1.21 against the global trend of it being equal to the US dollar. Capital controls and financial regulations to check the outward flow of money has made the Kimchi premium a popular trend in Seoul as far back as 2016. These growing restrictions have seen the world’s oldest cryptocurrency become a goldmine as they have led to the inflation of BTC prices in the country. Earlier, popular South Korean crypto exchange Upbit imposed a 72-hour curfew on crypto withdrawals into local currency for crypto owners who are just making their first trades.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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