South Korea’s Bitcoin Kimchi premium has been steadily declining since mid-April

Golden Finance reported that the Korean Bitcoin Kimchi premium has been steadily declining since mid-April. This phenomenon stems from the fact that South Korea's cryptocurrency market is closed to foreign investors, and local investors may be punished for buying large amounts of cryptocurrency on foreign exchanges for arbitrage. Due to the limited local supply of cryptocurrency in South Korea, a surge in demand often leads to a widening price gap. The decline in Bitcoin premiums coincides with a decrease in trading volumes on South Korea's top five cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), which dominate the local market. According to Coingecko data, the total trading volume of these five exchanges in the past 24 hours was $2 billion, while the figure was reported to be close to $18 billion on March 6.