• Thu, Nov 15, 2018 08:41 PM
  • All times are UTC
  • Edition :
    International
Link copied

Bank of Korea analyses price gap between domestic and foreign crypto asset market

(Image: Yonhap)

Sep 12, 2018 09:17 am UTC

The Bank of Korea has published a research note in which it has analysed the causes and implications of the price difference between domestic and foreign crypto asset market.

Authored by the bank’s Payment Research Team, the study titled “Analysis on the cause of price gap between Korean & foreign crypto asset market”, noted that there exists a “significant disparity” in the prices of crypto assets listed on various exchanges.

“Since the second half of 2017, the price of BTC-KRW was on average 5% higher than that of the global average. This anomaly, which rose up to 40% in January 2018, was spotted not only in BTC-KRW but also in other pairs such as Ethereum-KRW and Ripple-KRW,” the authors said.

This price gap further increased earlier this year as the amount of supply from the overseas market was limited due to a number of factors, while the demand within the domestic market surged considerably. The authors said that the domestic demand rose due to “excessive overheating” of the Korean crypto market.

“The trend has been persistent and repetitive. And there lies possibilities for potential exacerbation as providing technical/political solutions for fluent arbitrage takes time. While the gap represents the excessive and speculative nature of the Korean market, it is also nudging participants to engage in illegal foreign exchange transaction,” they added.

The report called for constant monitoring of this space and the establishment of a proper trade market. It also recommended informing and educating market participants to prevent the expansion of irrational speculative investments caused by mere hopes for a rise in price.

Earlier this year, South Korea’s Financial Services Commission (FSC) introduced real-name system for crypto traders. However, recent reports suggest that only 40-50% of accounts at top four domestic crypto exchanges have been converted into real-name ones. Faced with such low conversion rates, banks are now reportedly seeking to limit services for customers who are not using the real-name system.

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
More
  • Bitcoin (BTC) $5,586.14(0.8%)
  • XRP (XRP) $0.4656(+3.4%)
  • Ethereum (ETH) $180.118(+1.2%)
  • Bitcoin Cash (BCH) $415.498(-3.4%)
  • Stellar (XLM) $0.2329(+4.2%)
  • Bitcoin (BTC) $5,586.14(0.8%)
Nov 15, 2018 (Thursday)
11:25
75 pct Irish people unwilling to consider career in blockchain technology: Study
10:23
American restaurant chain Sweetgreen plans blockchain push following $200M funding
10:11
Decentralized exchange EOSDAQ lists KEOS tokens
08:45
Smithfield Foods joins Subway, Tyson Foods and others in Food Industry Blockchain Consortium
06:36
Telecom giant Telefónica seeks to streamline core business processes using IBM Blockchain
06:03
Gibraltar Stock Exchange forms joint venture with fintech firms to develop blockchain technologies
04:44
Singaporean crypto startup KuCoin secures $20M in Series A round from IDG Capital, Matrix Partners, and Neo Global Capital
04:12
H&M subsidiary Arket trials blockchain for product traceability
03:28
Kakao’s blockchain platform Klaytn teams up with stablecoin project Terra
Nov 14, 2018 (Wednesday)
11:42
MAS, Bank of Canada begin work to link respective blockchain platforms
10:11
SIX Swiss exchange expects blockchain-based platform to replace existing system in 10 years
07:02
Circle Invest launches crypto reward program for new users
06:10
Thailand’s Democrat Party taps Zcoin’s blockchain for e-voting system in primary election
05:14
Chinese city of Loudi rolls out blockchain platform for real estate data
04:05
Crypto exchange OKEx adds support for Vietnamese Dong to C2C trading market
03:38
Shell and BP-backed VAKT to launch blockchain platform to digitize commodities trading industry by end of 2018
Nov 13, 2018 (Tuesday)
14:12
HSBC joins blockchain startup Axoni's Series B funding round
11:14
CSIRO’s Data61, CBA successfully complete trial of blockchain-powered smart money
09:51
Nine leading shipping companies team up for new blockchain consortium
07:21
Transoil International, Solaris Commodities conduct blockchain pilot for Black Sea wheat
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
EconoTimes