The recent increase in the Bitcoin premium on the South Korean exchange Upbit is driven by concerns over the weakening Korean won.
Bitcoin Premium and Reasons for Growth
Bitcoin is trading with an expanding premium on Upbit, one of the largest South Korean exchanges. While a premium on the Korean won pair is not uncommon, recent developments show its growth. BTC traded at $94,574.92 on most spot exchanges, while on Upbit the price stood at $96,722.63, creating a gap of over $2,000. The Bithumb premium was lower, with BTC at $96,571.21.
Growing Interest in Cryptocurrencies in South Korea
South Korean investors have increased their presence in the cryptocurrency market in the late months of 2024. Although there was previous active participation, the current surge is fueled by the won's decline and international economic factors. According to the latest data from the Bank of Korea, the number of domestic crypto investors surpassed 15 million for the first time.
Regulations and Impact on Crypto Investors
South Korea introduced a new layer of regulation under the Virtual Asset User Protection Act, which came into effect in July. This allowed the country's central bank to monitor the crypto market more closely, contributing to the formation of up-to-date statistics on crypto investors.
The rise in the Bitcoin premium on Upbit is linked to economic challenges in South Korea and increasing interest in cryptocurrencies amidst tighter regulations.
