Bitcoin is about to break the $70k limit in South Korea, wherein the rest of the world is trying to break the $60k limit. One Bitcoin is equal to almost $76,500k won as registered on their biggest crypto exchange: Bithumb, as this specific exchange handles about $3 billion in terms of the online crypto exchange. The above equivalent of Bitcoin in South Korea is equal to almost $68k, but on Coinbase, Bitcoin’s total price is still $59k.
The current rate of the premium is about 15% in all of South Korea, according to the new capital controls that are being imposed and enacted throughout the country. These restrictions are valid on currency derivatives trades, cross-currency swaps, and forwards as well. A limit of about 50% is imposed on the currency forwards and derivatives on the Korean banks regarding their equity capital, but at the same time, the international banks operating in South Korea gets a ceiling of about 250%, which is a lot more than the local Korean banks are getting.
Bitcoin is not Thriving at a Different Speed in South Korea
Apart from that, the current increase in the conversion rates is also due to the government’s own tries to increase the value of their own fiat money when it gets converted into USD. There is no need for the investors to become happy or all positive about it because even if they plan on selling their Bitcoin in South Korea, they won’t be able to get the intended $68k price as after the conversion, the Korean government will take the 15% on top of the original worldwide price of Bitcoin so at the end of the day you will still end up with the same price.
All of this has created an aura of confusion and controversy as the western and other worldwide exchanges are having a hard time complying with these series of new manifestations imposed by the Korean government. It doesn’t mean that the cryptocurrency is booming in Korea faster than the rest of the world; it simply means that its price and performance are slightly different from those of other exchanges and regions.