Cryptocurrencies command 'Kimchi Premium' in S.Korea due to capital flow controls - BofA


FILE PHOTO A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8 2021. REUTERSDado Ruvic

FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021. REUTERS/Dado Ruvic

SEOUL (Reuters) - Cryptocurrencies like Bitcoin in South Korea carry a hefty premium over international prices due to capital flow controls aimed at curbing cross-border flows of hot money, which prevent arbitrage, the Bank of America said in a report on Tuesday.

On Tuesday, Bitcoin, the world's biggest and best-known cryptocurrency, was trading at $45,219 on Bitstamp Exchange, but data from the Coinmarketcap.com shows it was trading about $4,000 higher in South Korea. Back in January, 2018, the premium went as high as almost $8,000.

Subscribe now and get 30% off The Star Yearly Plan

Monthly Plan

RM 13.90/month

RM 9.73/month

Billed as RM 9.73 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 8.63/month

Billed as RM 103.60 for the 1st year, RM 148 thereafter.


Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read


Want to listen to full audio?

Unlock unlimited access to enjoy personalise features on the TheStar.com.my

Already a subscriber? Log In