South Korea has been responsible for the price hike of cryptocurrencies more than any other country on the globe, mainly because of the huge demand of crypto tokens. Three of their biggest cryptocurrency exchanges have benefitted from this region’s crypto environment such that their trading volume is much greater than other globally popular exchanges. This situation has lead to an arbitrage of tokens as the investors who have bought tokens from the US/UK market, often prefer selling these tokens in the South Korean market, where they make much more money. Due to these significantly high prices, the local exchanges are recording great success.
Even in a country with a population lesser than 50 million, the demand for cryptocurrency is such that it is traded at a 30 percent higher price than other countries.
According to a study, more than 80 percent investors have profited from their crypto-investments. Moreover, approximately every third salaried person in Korea has about $5,000 in crypto. Such is the state of an investment model which is solely based on speculation.
The enormous exchange volume can be easily understood, as Korea has always sought for the trends, especially tech-trends like cryptocurrency. It was one of the first regions to adopt cryptocurrency in their system. This adoption has been highly backed by the local new outlets and they have helped in the coverage as well as creating awareness about cryptocurrencies.
However it is not all bread-and-butter for those engaging or planning to engage in taking the advantage of prices from this mainstream buy/sell process. The country is a restricted economic space with regulations that hold the money within its boundaries. Even through such heavy trading, the laws in place have managed to allow around $45,000 out of the country. Beside these restrictions, there are several others which make trading gruelling for foreigners. In 1997, it was a time in the Korean economy when the country plunged into a serious financial crisis, which required the direct intervention of the International Monetary Fund (IMF). Hence, these regulations were placed to control the money flowing out of the country.