- The decline in South Korea’s Kimchi Premium signals shifting sentiments in the country’s crypto market.
- Limited local supply exacerbates price gaps, contributing to fluctuations in the Kimchi Premium.
- Decreased trading volumes on top South Korean exchanges reflect subdued market activity amidst global events.
The Kimchi Premium, often regarded as a gauge of South Korea’s interest in cryptocurrencies, has been consistently decreasing, hitting 1.54% on a recent Friday afternoon in Asia. This metric reflects the variance in Bitcoin prices between South Korea and other global markets and has experienced a notable decline since mid-April, signaling a notable change in the country’s cryptocurrency scene.
This decline in the Kimchi Premium can be attributed to various factors influencing South Korea’s crypto market. One key element is the restrictive nature of the market itself, which limits foreign investors’ access. Local investors engaging in arbitrage face potential legal repercussions under the Foreign Exchange Transactions Act if they buy large volumes of crypto from foreign exchanges.
Moreover, South Korea’s limited local supply of cryptocurrencies exacerb…
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