As cryptocurrency regulations heat up globally, South Korean officials have been increasing regulatory discussions about the booming cryptocurrency economy. Although the market value of digital currencies such as Bitcoin has plummeted recently, prices in the global cryptocurrency market rose across the board on Monday. In South Korea, because the price of Bitcoin is 8% higher than the global average, crypto assets like Bitcoin have once again experienced a “kimchi premium”.
Bithumb and Korbit Bitcoin exchange rates indicate that Bitcoin premiums are picking up
After the sharp drop in the price of digital currencies that plagued the market from last week to weekend, South Korea’s “kimchi premium” is back. The global average shows that the value of crypto assets such as Bitcoin (BTC) and Ethereum (ETH) has risen sharply.
In the past 24 hours, BTC has risen by 10% and ETH has risen by 20%. At 8:42 AM Eastern Standard Time, Bitcoin’s global average hit a daily high of $38,800 per coin. However, in South Korea, because Korbit and Bithumb have highlighted the differences between the two, BTC prices are higher than the global average.
Currently, South Korea’s “Kimchi premium” for BTC is 8% higher because the global average price of Bitcoin is US$37,700, and Bithumb’s BTC spot price is US$40,800 per BTC. Korbit’s exchange rate is slightly lower, at $40,568 per unit, but it is still a premium compared to the global average.
The price of ETH in South Korea also rose slightly because the ETH exchange rate of Bithumb and Korbit was $100 higher than the global average. Bithumb has more advantages than Korbit because its cryptocurrency trading volume exceeds $2.4 billion in 24 hours. On the other hand, Korbit received $149 million on Monday.
The government pays more attention to insurance premiums, and countless types of crypto assets see price differences compared to the global average.
South Korea’s cryptocurrency premium has appeared multiple times in 2021, which has led regulators to pay more attention to the cryptocurrency economy and to think about stricter digital currency regulations. A report by Maeil Kyungjae shows that the South Korean government is increasingly worried about “kimchi premiums” because premiums rose to a high of over 18% in the first week of April.
In addition to Bitcoin (BTC) and Ethereum (ETH), some other crypto assets also have a premium in South Korea. In the country, digital currencies such as XRP, ETC, ADA, EOS, BCH, and DOGE are all traded at a higher value, which is in sharp contrast with today’s global average.
What do you think of South Korea’s “Kimchi Premium”? Let us know your thoughts on this topic in the comments section below.
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