Bitcoin’s “kimchi premium” has fallen dramatically following an announcement by South Korea’s regulators that they would sharpen their focus on illegal trading activities in the cryptocurrency markets.
Due to arbitrage concerns, there are also heavy restrictions on foreign traders opening accounts on Korean exchanges and selling their BTC holdings for a profit.
The drop in price also coincided with the unexpected suspension of South Korean cryptocurrency exchange Upbit’s KRW deposit and withdrawal services.
The regulators further warned that South Korean police plan to cooperate with international organizations such as Interpol to “systematically respond to illegal activities through overseas exchanges.”
Despite the strong warning, none of the government agencies in attendance made any suggestion to introduce or change the legislation but only reaffirmed their focus on enforcing the existing virtual asset regulations in the country.
Upbit suspends services The government announcement that crypto would be a primary focus of regulatory action appears to have been one catalyst for the fall in Bitcoin’s price in Korea and subsequent narrowing of the Kimchi premium.
- Kimchi Premium Puts Bitcoin Lower Ahead of Fed Minutes; What's Next?newsbtc.com
- Bitcoin's 'Kimchi premium' slips as South Korean officials pledge action on illegal crypto market activitiesThe Block Crypto
- Bitcoin Price Drops as Kimchi Premium Fades AwayDecrypt
- Kimchi premium collapses: Short-term top signal or a reset for Bitcoin?Cointelegraph
- Crypto Alert: Cryptocurrency Market Cap Tanks 5% Losing Over $100 Billion With Kimchi Premium Losing SteamCoingape
- Kimchi Premium Vanishes, then Returns as Bank Issues Appear to Have Hit UpbitCryptonews
- CoinMarketCap Removes South Korean Crypto Exchanges From Bitcoin Price Trackerhttps://bitnewstoday.com/
- Kimchi Premium Crashing After Bitcoin Traded Above $70K in South KoreaCryptoPotato
- Bitcoin Drops 6% in Korea, Shrinking the 'Kimchi Premium'Nasdaq
