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Bitcoin News Update: Strong Retail Demand and Regulatory Factors Sustain Elevated Bitcoin Premium in South Korea

Bitcoin News Update: Strong Retail Demand and Regulatory Factors Sustain Elevated Bitcoin Premium in South Korea

Bitget-RWA2025/11/15 16:04
By:Bitget-RWA

- South Korea's Bitcoin Kimchi Premium hit 4.12% on Nov 16, reflecting strong local demand amid global crypto volatility. - Analysts link the premium to retail-driven speculation, limited institutional involvement, and regulatory restrictions on cross-border trading. - The cyclical premium since 2020 highlights South Korea's unique market structure with fragmented exchanges and active retail participation. - Regulatory balancing acts between crackdowns on unlicensed platforms and blockchain innovation sust

The Kimchi Premium for Bitcoin, which refers to the price gap between South Korean exchanges and the global average,

, signaling ongoing strong interest in cryptocurrencies within South Korea even as international markets remain unstable. This premium, with the worldwide average, sheds light on South Korea’s distinctive speculative behavior and regulatory landscape.
Bitcoin News Update: Strong Retail Demand and Regulatory Factors Sustain Elevated Bitcoin Premium in South Korea image 0
Experts including active retail trading, minimal institutional involvement, and barriers to cross-border transactions.

The return of the premium comes after it had previously fallen earlier in the year, as global crypto values dropped due to higher interest rates and economic uncertainty. Yet, the South Korean crypto sector has remained robust,

who are adopting digital currencies, along with more domestic exchanges supporting dollar-cost averaging. Regulatory oversight continues to play a major role, as officials while also encouraging blockchain innovation.

Industry observers point out that the 4.12% premium is part of a recurring trend seen since 2020. “The structure of South Korea’s crypto market—with its high retail activity, fragmented platforms, and frequent regulatory actions—naturally creates arbitrage possibilities,” commented a crypto strategist based in Seoul

. This situation has drawn in international arbitrage traders, though and limited liquidity often restrict their ability to take full advantage of the price gap.

The ongoing existence of the premium also brings attention to wider discussions about how efficient crypto markets are. Unlike conventional assets, Bitcoin’s value is not determined by a single marketplace, resulting in regional price differences shaped by local demand and regulations. In South Korea, where cryptocurrency trading is deeply rooted in the financial scene, these elements continue to widen price gaps

.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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