Korea’s so-called Kimchi Premium has returned after falling to zero last week, with Bitcoin currently selling 6% higher in South Korea than in the rest of the world.
The Kimchi Premium is the difference between the price of Bitcoin in Korean markets and the average price across all other countries. The reason behind this discrepancy is the tight Korean capital controls that make it hard to arbitrage the difference.
A few weeks ago, the premium was as high as 22%, according to data from CryptoQuant. At this time, Bitcoin was being sold in Korea for as high as $65,000, while the price was as low as $55,000 elsewhere.
Then the premium started drastically declining. On April 23, the premium briefly fell to zero, reaching parity with the rest of the world.
The Kimchi Premium has declined over recent weeks. Image: CryptoQuant.
It didn’t stay that way for long. Over the weekend, the Kimchi Premium rose as high as 11%, with Bitcoin selling at $55,500 in Korea—$5,500 higher than elsewher
Źródło: https://decrypt.co/69093/koreas-bitcoin-premium-returns-after-falling-to-zero
