• Days
  • Hours
  • Mins
  • Secs
  • Mon, 16 Sep 2019, 02:06 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

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

(Image: Yonhap)

Wed, 12 Sep 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. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,217.20 (-1.11%)
  • Ethereum (ETH) $190.68 (+1.07%)
  • XRP (XRP) $0.260300 (-1.03%)
  • Bitcoin Cash (BCH) $304.44 (-0.28%)
  • Litecoin (LTC) $70.25 (-0.27%)
  • Bitcoin (BTC) $10,217.20 (-1.11%)
Sep 16, 2019 (Monday)
11:57
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:31
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:24
HTC’s blockchain smartphone Exodus 1 adds support for Bitcoin Cash
10:14
Crypto Technicals: DASH/USD capped below 50-DMA, 'Bullish Divergence' keeps scope for upside
06:51
Crypto Technicals: LTC/USD breaks above 21-EMA, scope for further gains
06:41
ConsenSys enters decentralized finance ecosystem with new product suite ‘Codefi’
06:06
Kaleido Blockchain integrates QEDIT Zero-Knowledge Proof Enterprise Privacy Solution
05:21
Crypto Technicals: ETH/USD extends 21-EMA breakout, pauses shy of 55-EMA, bias bullish
04:39
Canada-based Bull Bitcoin latest to join Blockstream’s Liquid Network
04:25
Crypto Technicals: BTC/USD extends sideways with no clear directional bias
04:12
FxWirePro Poll: Ethereum seen to rise but not recoup 2018’s drastic losses
03:32
CME's bitcoin index provider CF Benchmarks scores FCA license in Europe
03:30
eToro introduces programming language Lira to simplify derivatives trading
03:18
Crypto ATM chain Coinme reels $1.5M from Ripple's Xpring, Blockchain Finance
03:16
Crypto lending firm BlockFi now lets clients earn interest on any amount of crypto holdings
03:07
Facebook to face 26 central bank officials over Libra crypto project
03:02
Deutsche Bank signs up to JPMorgan's blockchain-based Interbank Information Network
Sep 13, 2019 (Friday)
11:12
Libra Association head confident about crypto launch in H2 2020
10:42
Blockchain industry welcomes Mastercard-R3 collaboration, but skeptical about the future of private networks
09:52
tZERO to bring blockchain to film financing via new partnership
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft