The “kimchi premium” known from 2017 has reappeared in Bitcoin

there is explanation of btc price of south korea

The Kimchi Premium, first seen in bitcoin in 2017, has begun to reappear.

Kimchi premium refers to the price difference between cryptocurrency exchanges in South Korea and other exchanges. In 2017, when Bitcoin peaked at 20 thousand dollars, prices on exchanges in South Korea had approached 25 thousand dollars. Almost 5 thousand dollars difference was seen between these exchanges.

Although the current price difference is relatively less than this, this may be a start for the kimchi premium. Recent data shows that the price of Bitcoin is 5.5 per cent more expensive on exchanges in South Korea, and that difference opens up as the price rises. A 5.5 percent price difference at current prices means that Bitcoin is traded at 31 thousand dollars on other exchanges, while the price is about 33 thousand dollars on South Korean exchanges. That difference hasn’t been above 1 percent for a long time.

The chart below shows how the price difference in Korean exchanges has increased recently.

What is the reason for price difference?

Reason for the Bitcoin price difference between the Korean exchanges and other exchanges is not known for sure. However, a number of factors, such as strict anti-money laundering policies that prevent arbitrators from closing the gap, may be the underlying cause. In addition, additional measures such as limits on cross-border money transfers of foreign traders in the country, the obligation to use the real names of traders, have led to this price difference.

On the other hand, in bear markets, the situation is the opposite. In the declines, the price on Korean exchanges falls below the average on other exchanges.

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