Kimchi Premium: What’s Up With South Korea’s Cryptocurrency Mess?


“kimchi premium” Cryptocurrencies Korea “kimchi premium” So “kimchi premium” is the difference in price of cryptocurrencies between worldwide prices and Korea So on any given day you’ll have the price of a Bitcoin being 10 to 30 percent higher in Korea compared to anywhere else in the world And interestingly in the top three cryptocurrency exchanges worldwide in terms of trading volume Two are Korean So why is there a “kimchi premium?” To be honest, no one knows However, we might be able to find some reasons Such as advanced infrastructure So Korea has some of the fastest internet speeds in the world And also a very high smartphone penetration rate And another reason would be Familiarity with online trading systems So people are like trading stocks on the go on the subway And maybe one final reason is the existence of offline cryptocurrency exchanges So we have high street shops where you can literally walk in and open a cryptocurrency account and get advice on how to start trading So this is very good for elderly people who might want to enter the cryptocurrency arena Oh my god Do not talk to me about regulations The Korean government is trying to regulate this market and to be honest, it seems they don’t know what they’re doing A few weeks ago they decided to suspend new registrations on cryptocurrency exchanges So now you can’t register anymore until January 30th Then they decided to ban the purchase of cryptocurrencies on foreign exchanges using your credit card So now you cannot purchase cheaper coins abroad at least in an easy way And now, they’ve got another regulation They want to ban all foreigners regardless of residency status the ability to deposit money into their cryptocurrency wallets in order to purchase coins in Korea And you’ve got different ministries who are fighting one ministry is saying let’s ban all cryptocurrencies We’ve got the Blue House that’s saying we won’t do that Then we have the finance ministry saying something Then you have financial…[email protected]#$%^&*( Well, are you still following what I’m saying? That’s the point No one knows Meanwhile This is making the price go up and down up and down People are taking funds out putting funds in making money losing money Panic buying Panic selling It’s a big mess, so there is just one option left Let’s wait and see what happens because right now we simply don’t know

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