The last two months have not been the best for Bitcoin. In fact, the coin has been on a low. This low has also had a profound effect on the South Korean virtual currency market, which has always traded well above the global exchange rates.
Back is December, Bitcoin was going through some major highs. During this time, South Korean exchangers were trading Bitcoin at prices 50% high than anywhere else on the globe. These skyrocketing prices led to CoinmarketCap removing many Korean exchanges. The reason for this according to them was, “the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”
Bitcoins current low has turned the South Korean market upside down and has put their Bitcoin exchange rates on level with the rest of the world.
One of the big pushes behind this drop has been the South Korean Government’s recent stance on cryptocurrency and cryptocurrency exchanges. In January of last month, a South Korean official in the justice ministry reported that there were plans to shut down every exchange in the country. The statement caused fear amongst investors and caused a lot of them pull their money out of cryptocurrency.
It was only a week later that they went back on their threats and reported that they had no plans of shutting down every exchange in the country.
Right now the South Korean is on a mission to clamp down on arbitrage traders by smacking down more regulations. Currently they are taking advantage of South Korean exchanges by buying Bitcoin from different exchanges around the world and selling them in South Korea where they are worth a lot more. They are solving this problem by banning all foreign traders from taking part in South Korean exchanges.