CryptoQuant analysts have reported that the overpayment on South Korean crypto exchanges compared to global values has reached a 27-month high of 10.32%. This trend has been influenced by local regulations that restrict arbitrage and prohibit non-residents from accessing local platforms.
Korean investors may also face legal consequences under the Foreign Exchange Transaction Law if they purchase digital assets on foreign exchanges.
Limited supply and high demand can cause imbalances and significant price differences.
In August 2022, the South Korean Financial Services Commission took action against 16 foreign cryptocurrency platforms for providing services to residents without proper registration.
The move came after the FSS launched an investigation into local banks for facilitating unauthorized transfers totaling $6.5 billion to Bitcoin exchanges associated with the “kimchi premium.”
