The price gap between exchanges in South Korea and the rest of the world has recently widened for bitcoin and other cryptocurrencies.
This gap has become a deep chasm. According to the latest data, one Bitcoin is trading at around $23,000 on the South Korean Bithumb exchange. On Bitfinex, one of the world’s largest Bitcoin exchanges, the price of a Bitcoin can hardly hold at $16,000.
The reason is the ban on trading cryptocurrencies for foreigners
To go to the past month to understand this price difference needs. Cryptocurrency trading was banned to foreigners in South Korea last month. The fact that it has become almost impossible for foreigners to take advantage of arbitrage opportunities in South Korea has made the price difference huge.
The situation is the same not only for Bitcoin but also for other cryptocurrencies. Based on the example of Bitcoin Cash, a Bitcoin Cash is traded at $2500 on Bitfinex and around $3800 on Bithumb.
This price difference is expected to continue in the long run, as the ban on trading cryptocurrencies to foreigners will continue.