Bitcoin Price Reached $2,070 in South Korea

As of In May 12, bitcoin price within the South Korean exchange marketplace is $2,076, almost 12.7 % higher than that of the worldwide average Bitcoin price. Bitcoin is being traded on South Korean exchanges, buying and selling platforms at a price that is $269 higher than the worldwide average Bitcoin price of $1,807. Ever since the debut of venture capital sponsored and controlled bitcoin exchanges such as Korbit and Bithumb, the South Korean bitcoin and cryptocurrency exchange has offered superb arbitrage possibilities for investors. South Korean bitcoin exchange have shown an excessive premium on their listed bitcoin expenses and cryptocurrency trading fees. Investors and digital currency researchers had investigated such arbitrage possibilities as early as 2015.

In an analysis piece entitled as Investigating the superb Korean Bitcoin Arbitrage opportunity, said:

“This type of gap exists in different markets too, but the South Korean situation is strange because it’s by no means a small or immature marketplace. The buying and selling volume on Bithumb over the last thirty days has never dropped under 1,390 bitcoin, with an average of about 3,000.”

Thinking about that the South Korean Bitcoin exchange marketplace, the fourth biggest bitcoin exchange marketplace in the world after Japan, the united states and China, is developed, that is obvious considering that one clarification, which would rationally justify arbitrage possibilities and excessive premium bitcoin prices listed by South Korean bitcoin exchanges is the presence of strict know Your customer and Anti-money Laundering regulations.

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In step with bitcoin researcher Cryptonight, the author of the above-noted analytical blog post, the government and central bank will probably question South Korean organizations if they try to buy big quantities of bitcoin in overseas. All in all, if a foreign commercial enterprise was to promote huge quantities of bitcoin on South Korean exchanges, it’d be wondered by the local authorities in regard to the purpose of the finances.

Cryptonight said:

“If a Korean-owned business were to attempt to shop for Bitcoin in big quantities from overseas, they would be questioned and probably fined if they couldn’t nicely explain the reason of the purchase. And due to the fact Bitcoin has a no value within the eyes of the government, the notion that these businesses were sending millions of Korean gained overseas looks a lot like money-laundering.”

Even though bitcoin is being traded at a premium price that is considerably higher than most markets, it is hard for foreign or external investors to open bank accounts in South Korea. Therefore, if investors securely buy bitcoin and try to promote it on South Korean bitcoin exchanges, they wouldn’t be able to do so without opening South Korean bank accounts that are not easily available to foreigners.

Talking to a few customers of Coinplug, local South Korean customers mentioned that the bitcoin service provider where the finances came from and why they were cashing out bitcoins via ATMs questioned them.

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The consumer stated:

I was requested by Coinplug to explicitly describe the source of my finances and why I decided to cash them out in South Korea via the Coinplug cash-out-through-ATM approach. The startup quickly disabled my account until I submitted screenshots of my passport and performed a phone interview.”

At the same time as bitcoin is being traded at a higher rate in South Korea, it is hard for outside and foreign investors to take benefit of, thinking about the marketplace’s strict Anti-money Laundering regulations.

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