We have seen for a while now that Korean Crypto Prices are 40% higher than in all the other places.
Generally when you look for the reasons on the internet they just state, that this is normal as koreans have huge demand for them and there is not enough supply.
This is really a stupid reason, as this is normally cleared by arbitrages from other places in the world. I can understand a 10-20% price difference because of local banks being very inefficient and expensive to transfer to. But I cannot believe that this is the issue in Korea with 40% price differences.
There should be a shit ton of verified users in Korea buying overseas and selling locally all day long, and repeating this until the prices in Korea are more or less the same.
It seems obvious that neither Koreans not Foreigners can do this.
The question is:
- Have Koreans capital controls, so that the money can not be sent from korean banks to foreign banks? (Like Cyprus)
A perfect market would have people doing exactly what you are thinking of doing; buying cheap in the US and selling high in KR.
Eventually US price would be brought up and KR price brought down to an equillibrium.
I remember KR has a lot of laws about using some sort of social government ID number to register for social media... is that necessary for account on Korbit? This is a hurdle for foreigners to enter your market. Also, it is also difficult for Koreans to create accounts with exchanges overseas as well, so I think that is also difficult.
We have the same thing happening in Japan. Our price is higher.
It is because of difficulty of transferring money from KRW to USD and making accounts over seas.
This is very interesting. I saw Korea as a developed and quite free country. Reading the necessity of an ID for social media and dificulties of converting KRW to USD sounds really surprising. This would mean that it is so difficult to do arbitrage by sending money out of Korea, that the cost would equal 40-50%! In the case of Japan having a 20% higher price is understandable still... but 40-50% is really too much...
I enjoyed reading your post. There is a lot of good stuff.
Upvote & resteem buddy.
Thanks for resteeming!
You are most welcome.
@mexbit, I guess It happened this kind of gap exists in other markets too, but the South Korean situation is atypical because it’s by no means a small or immature market. In other words, it’s possible that it’s the very nature of Bitcoin . its ability to circumvent legal restrictions . that is causing it to be so expensive in Korea.Thanks to the information. Resteemed your post.
Korea must be some kind of Cyprus I guess.... Thanks for resteeming!
@mexbit - Sir this is crazy, I think SK has no such regulations to send funds out of the country... But my country has such stupid rules & BTC is trading around 17000 USD here Sir...
(My country is Sri Lanka)
+W+ [UpVoted & ReSteemed]
As said before, +20% is in the acceptable range (because of banking fees and so on)... but 50% is excessive.. Thanks for resteeming!
i think all happens due to high demand. but it also tels us btc is at an uptrend soon. nice finding & a nice post @mexbit
@resteemia
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I think BTC's importance is going to shrink more and more... Now at 32%... Some day its "dominance" will be at 5%... I think BTC is becoming a liability to the Cryptomarket...
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this is very strange to me thanks for sharing this post resteemed
Thanks for resteeming!
This is great article and great topic and very useful information
Resteem
@mexbit
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Wow! great news.
Thanks for resteeming!
Exchanges of these countries selling bitcoin at high price because of huge demand and we can not buy bitcoin from another country . Price will be slightly different in all Korean exchanges. High Tax may be other reason of this .
So you live in Korea? Why can you not buy bitcoin from other countries?
One of the reason coinmarketcap removed korean exchages from the list and the crypto market cap took a 100 billion hit.
Yeah... that was why I was raising the question... 50% is excessive...
selling like hell and got the price to way lower of all time in this week resteemed
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hmmm this is very interesting after seeing todays market prices something is wrong
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Woah, seriously? I never thought the prices could be different in another country. Obviously, they can't sell it in other countries, because anyone would get rich overnight...
Correct... but in all the forums they are only talking about the huge demand is the culprit, which does not make sense... the closest of a price difference like this I saw in Zimbabwe when Mugabe stepped down... but in Korea??? I do not get it.
Well, this is something new to me completely. I still can't believe this huge difference in prices in Korea...
I want to ask same question...bitcoin price in my country(India) is more than 18000 $.....1 hour before i bought 215 steem of worth 1300$ but i gave bitcoin of worth 1600$ to @blocktrades...what happened with 300 $...they are showing fees is only 13$ ...This is price gap of bitcoin between USA and india
I think this might be the commission for the exchange and quick change of prices between currencies...
it means south Korean people are really taking the advantage of this situation and we are not even aware about
I think they are being taking advantage of... So sorry for these people....
Your post are always so helpful @mexbit
learning new things everyday!!!!
Resteemed and upvoted
thank you for sharing
Thanks for resteeming!
i think your post is very useful....i learn many thing from your post....keep it up brother
Wow! Great and amazing concept sir.
Thanks @mexbit for sharing this post.😊
Upvoted and Resteemed your post.
wow. amazing post. THANKS for sharing :)
Good question. I am sure tons of people are wondering that right now.
when other countries are taking step to develop crypto ,some countries have banned this........so regret!!!!!!
Woowww amazing...
i was too wondering for the reasons..thanks for sharing this :)
I just love it sir.....
Thank you sir for sharing
Outstanding perfomance for bitcoin
Thank's for sharing
bitcoin has increased a lot. I hope not.
there is huge difference due to coinmarketcap website i think earlier it was all red due to that
Interesting information, thanks for it! I'm sorry for Korean people.
hahh buy low sell high but that's not the case the inflation among the currencies keep getting changed per seconds
koreanas seems to be running this industry with their moves
they must have been doing that all day long but how is that happening
huge price differences i was not able to understand it for a moment
40% price differences its mindblowing for me how big impact it will have
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