The crash of Bitcoin in the last few days has brought the Kimchi premium down, back at zero. The Kimchi premium which represents the global price of Bitcoin compared with the price in South Korea rose massively in recent times. The increase was a result of the historical Bullish movement of the flagship currency.
The difference reached a record high of 26% when BTC traded around $58000. This implies that while the rest of the world saw BTC at $58K, South Korean exchanges traded BTC at $70K. However, in the last 24 hours, the price of Bitcoin dropped drastically and is currently traded at around $48K. This affected the difference and the Kimchi premium is back to 0%, causing a balance in prices between South Korea and the rest of the world.
At one time this week, the Kimchi premium even went as far as negative. The CEO of CryptoQuant Ki Young Ju has advised investors not to rush into the market just yet. He added that in the meantime, the market is still over-leveraged and the risks associated with investing at the moment are still high.
Bitcoin has hit its lowest point since March 2021, dipping down to $47500 in the early hours of today. This has to some extent caused stability in the Kimchi premium.
How Crypto Activities Are affecting the Nation
The Government of South Korea on the other hand is looking to enforce cryptocurrency regulations in the country. For some months now, fraudulent activities associated with digital assets have become more popular. The Financial Service Commission has sent a message to financial companies, appealing to them to be vigilant on transactions and be willing to report any illegal activity spotted or suspected.
The FSC is willing to work hand in hand with the Country’s Police force and tax authorities to fight and eliminate fraud in the Nation.