Bitcoin is currently valued at around $65,000 in South Korea due to the resurfacing Kimchi premium. The coin is selling almost 18% higher in South Korea than in the global markets. Despite the recent price falls, Bitcoin remains above the $60,000 mark in the Asian country as demand soars the coin’s price.
Recently, traders within the region have been demanding. Cryptocurrencies, following the massive success of Bitcoin and the altcoins. This has made some regions sell the coin at a premium initiated by the continuous demand. Bitcoin trades at around $55,000 globally, and this is around $10,000 away from its ATH.
The digital asset industry goes red
Early Sunday morning, Bitcoin tested the $52,000 mark after the continuous fall below the recently attained high. Numerous altcoins have seen declines, with XRP declining as high as 20% within some hours. The asset’s volatility could be the primary reason for the rapid drops as the virtual asset industry faces some corrections.
The Kimchi premium is called the gap between Bitcoin in South Korea and the global market, and this difference has been recurring due to the Korean won. The premium was caused by putting the digital asset against the won, and that resulted in users buying Bitcoin far higher than the usual prices.
Most major crypto exchanges, such as Binance and Coinbase, currently trade their Bitcoin for around $55,000 as the asset recently added new gains after the previous fall. Some experts have something to say about the vast difference as Doo Wan Dam, one of the leaders for Maker, explained that the cash flow restrictions caused the notable difference. One of Korea’s most used exchanges, Upbit, announced a 72-hour restriction on withdrawals into won with accounts that recently got cryptos. This new restriction would commence from Monday.
South Korean exchanges sell BTC at a premium
Exchanges face some challenges concerning money flow, and Upbit released this new guideline following the recent happenings. The exchange shared these details after major banks in the country refused to globally send money to crypto-related institutions.
This means that traders would find it hard to sell cryptos to people outside the country due to new restrictions. This has led to Bitcoin’s unusual price growth in the country. Experts believe that it would continue to grow until some necessary changes are brought into the digital asset space.
The expert clarified that Bitcoin trading is now very profitable within the Asian region, but the restrictions to the global market make it difficult to trade the virtual asset. He added that Bitcoin isn’t the only virtual asset selling at a premium as stable coins with dollar backing also sell at a higher price on South Korean trading platforms.
One of the region’s crypto exchanges, Probit, sells the USDT at a $1.21 premium, which is relatively higher than the usual amount. Countries sell at a premium when restrictive regulations come to play, like in Nigeria. Nigeria faces some issues with premium selling, making it a lucrative business for those selling to the region.