Bitcoin is trading near $ 66,000 in South Korea as “Kimchi Premium” has returned.
Kimchi Premium is the spread between the Bitcoin price on South Korean crypto exchanges and Western exchanges.
Bitcoin is currently trading at around $ 66,200 on Bithumb, according to TradingView. That’s a whopping 15% or $ 9,000 more than the Bitcoin price of around $ 57,000 at Coinbase.
According to TradingView, Ether (ETH) is trading higher on Bithumb at around USD 2,350 than on Coinbase at USD 2,020.
The kimchi premium suggests increasing demand for bitcoin and ether in South Korea as the cryptocurrency market continues to expand globally.
Kimchi Premium does exist, but that doesn’t mean that you can buy bitcoin or ether at a lower price worldwide and sell it at a higher price in South Korea. This is because Korean crypto exchanges do not accept overseas clients due to local regulations.
Korean citizens also cannot buy cryptocurrencies at lower prices on global exchanges because those exchanges do not support Korean won. Binance and OKEx had local exchanges in Korea, but they both recently closed.
The Kimchi Premium appeared for the first time in 2016, according to the University of Calgary. Between 2016 and 2018, the average kimchi premium was almost 4.80% and according to the report in January 2018 it was almost 55%.