South Korea's "kimchi premium" in cryptocurrencies, driven by high demand and real name policy, reached a 10.88% premium on March 16.
South Korea's "kimchi premium", a price gap in cryptocurrencies, especially bitcoin, when listed in South Korea versus those listed in the US or Europe, has resurfaced as bitcoin reached new all-time highs of over $73,000 in mid-March. The phenomenon, driven by the high demand for cryptocurrencies in South Korea's closed market environment and a "real name" policy requiring a person's domestic virtual asset trading account name to match their bank account name, reached a 10.88% premium on March 16. However, this price gap may not be straightforward for international investors due to the South Korean won's restrictions and tight controls on transfers outside the country.
April 03, 2024
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