The volume of cryptocurrency trading in South Korea has increased recently, and as of January 4, 2024, two exchanges, Upbit and Bithumb, accounted for more than 10% of the total trading volume worldwide, as per the data.
Furthermore, bitcoin commands a premium in South Korea, where it trades for about $44,317 per coin, compared to the global average of $43,356 per unit.
The global cryptocurrency market saw a trade volume of about $95.98 billion as of 8:00 a.m. Eastern Time on January 4, 2024, with bitcoin (BTC) continuing to trade above $43,000. Upbit and Bithumb have executed $6 billion and $3.7 billion in 24-hour trades, respectively.
As of right now, Upbit’s bitcoin (BTC) is valued at $960 above the global average, indicating that South Korean platforms are currently trading BTC at a premium. BTC is currently trading on Upbit for $44,317 per coin. Bithumb, Coinone, and Korbit are also showing comparable premium rates.
Premiums are also mentioned for ETH, SOL, and several other popular cryptocurrency assets. The “Kimchi Premium,” a term used to describe cryptocurrency premiums from South Korea, has a long history.
South Korea’s crypto surge is driven by high demand, regulatory factors, and a Kimchi Premium, with supply and liquidity differences contributing. Rigid capital controls and specific foreign exchange laws also play a role.
As of January 4, 2024, 3.51% of the global trading volume of bitcoin (BTC) and 8.06% of all SOL transactions worldwide are made in Korean won.
For trading assets like POWR, BLUR, and SEI, the Korean won is crucial, with a significant portion of trades conducted in won, including 34.93% of POWR trades, 72.87% of swaps, and 55.56% of BLUR transactions.
In South Korea, LSK and ETH are popular among traders who exploit price differentials between markets to make profits, often successfully.
Also Read: South Korea Proposes Ban on Credit Card for Crypto Purchases
