The latest Bitcoin trough to its lowest level in two months has ended the South Korean cryptocurrency market, which exchange traditionally well above the global exchange rate

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But the new fall to the bottom in the range of 8000 $ has completely changed the market, and South Korean Bitcoin exchange rates are now at the level of the rest of the world for the first time in nearly six weeks. As Bloomberg reported this week, crypto-currency prices in South Korea have been dubbed "kimchi premium" after Korean kimchi-traditional cuisine – a traditional napa-based dish.

Effects of & # 39; ban FUD

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The South Korean Ministry of Finance rejected the claims, saying that & # 39; no agreement had been reached in favor of a total ban. Three weeks later, South Korean Finance Minister Kim Dong-yeon said the government would not impose bans.

Cryptocurrency legitimizing the exchange of cryptocurrency as providers of financial services, foreigners and investors will be prohibited from trading on South Korean trade. Cryptocurrency traders can no longer trade anonymously in South Korea and must have verified trading bank accounts in order to trade.

Reduce Arbitration

A ripple effect of the new South Korean regulations crack down on arbitrage traders. Taking advantage of the massive difference in world trade prices, traders would buy Bitcoin from different stock exchanges and sell for profit in South Korea. The ban on foreign traders will have reduced that, but the imminent tax ramifications in the country have also led to the sale by arbitrageurs.

Trade in the country will be asked to submit details of transactions above a certain threshold to the tax authorities, and gains made on cryptocurrency transactions after appreciation will also be subject to Capital gains tax. According to Bloomberg, at its peak, Bitcoin was trading above $ 22,000 at its January peak.