‘Kimchi Premium’ Resurfaces As South Korea Delays Crypto Taxation

Kimchi premium, a situation in which the trading value of the Bitcoin is significantly high on the exchanges in South Korea as compared to elsewhere around the world, has again been reported today after a period of one month.

Bitcoin Value at Major South Korean Exchange

According to the statistics, Bitcoin exchange value on major Korean exchange Bithumb is trading between 4% and 8% higher than anywhere as of the publication time. It is difficult to calculate the exact reason behind the trend. 

However, as per media reports, South Korea’s reigning democratic party is considering delaying taxes on crypto-assets for at least the upcoming year. 

Earlier this month, the Kimchi premium had vanished after the pledge taken by South Korea’s government to focus on illegal activities in crypto markets. 

The Infamous Kimchi Premium Resurfaces Amid Regulatory Delays

The South Korean Financial Services Commission, Ministry of Finance, Ministry of Justice, among other regulators, met on 7th April of this month to discuss virtual asset trading. In their announcement following the meeting, the authorities wrote:

“We will strictly crack down on illegal activities related to transactions such as market price manipulation, money laundering, and tax evasion using virtual assets through cooperation with the police, prosecution, and financial authorities.”

It’s important to note that not a single agency is involved in the meeting that seems to have suggested actual changes in the country’s laws or regulations. Instead, they merely affirmed a new focus on enforcing existing provisions. 

Kimchi premium which had been seen in March for the first time since January 2018. For the first time since January 2018, the infamous “Kimchi Premium” has returned in the last week of March 2021. While it remains far below the 2017 peak levels, it signals strong retail inflows.

Meanwhile, according to another local report, Joo Ho-young, who leads opposition People Power, has called for more aggressive oversight and a task force on virtual currency