South Korean Police Swoop on 25 Suspected Kimchi Premium BTC Traders

Source: Sean Lee/Unsplash

South Korean law enforcers still crack lower on illegal kimchi premium traders – and also have arrested 25 suspected traders who they believe ran an unlawful worldwide bitcoin (BTC) buying and selling ring.

KBS and Newsis reported the South Jeolla Province branch from the National Police Agency’s Security Analysis Division states the buying and selling ring processed some $72,000 price of illegal transactions through South Korean crypto exchanges in 2021.

The division announced that 10 of the people it’d arrested were South Koreans, nine were Vietnamese citizens, along with a further six were Vietnamese those who had received South Korean citizenship.

The kimchi fees are a phenomenon whereby, during crypto bull markets, bitcoin buying and selling volumes rise greater in Columbia compared to other areas around the globe. This spike sought after drives up BTC prices on South Korean exchanges – as much as 30% and above on some occasions. Some traders have searched for to make use of this to their personal advantage, by purchasing coins from over-the-counter (OTC) traders elsewhere in Asia after which dumping BTC on domestic exchanges.

Kimchi premium snapshot at UTC 11:00 on 21/09/2022, showing a cost discrepancy well over 1.3%. (Source: Screenshot/

This contravenes South Korea’s strict laws and regulations on foreign currency transactions, and traders have frequently tried to cover their tracks by selling their BTC for fiat and transferring their abroad. Oftentimes, customs officials have discovered, traders have searched for to purchase gold and silver and semiconductors using their profits.

The division stated it had become trying to investigate possible links to OTC traders located in Vietnam and claimed the group might have been most active in April, May, and June this past year – a period when BTC market prices in Columbia were around 10% greater individuals that in Vietnam.

Officials mentioned that they are investigating the roles of 33 other people they believe might have links towards the group and didn’t eliminate the potential of making further arrests.

Customs officials in Seoul made 16 arrests included in an identical analysis captured, while numerous domestic banks may also end up responsible with prosecutors and regulators performing their very own probes into kimchi premium-related matters.

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