Bitcoin is being traded at over $3,800 in South Korea, with a 33.5 percent premium.Currently, global average bitcoin price is $2,514, which is closest to the bitcoin price listed by the US exchange market at $2,533.On May 12, CCN reported that bitcoin price surged past $2,070 in South Korea, when the global average bitcoin price was at around $1,800.During that time, the South Korean bitcoin exchange market demonstrated a 12.7 percent premium over other major markets such as the US, China and Japan.Premium trading price of bitcoin in the South Korean bitcoin exchange market existed since 2015, with some of the market’s largest bitcoin exchanges including Bithumb and Korbit consistently demonstrating a 5 to 10 percent gap between exchanges in the US and China.That cap increased to 35 percent within 12 months, which currently is equivalent to $1,300.At the time, analysts suggested that arbitrage opportunities exist in the South Korean market due to its size.Because of its low trading volume, limited number of investors and suppliers, analysts stated that the market is easier to manipulate and take advantage of in comparison to other global markets.

However, investors and traders started to re-evaluate the high premium trading price of bitcoin in the South Korean bitcoin exchange market as it overtook the Japanese and European bitcoin exchange markets to become the third-largest bitcoin exchange market in the world.With a 229 million daily trading volume, previous claims of analysts that South Korea was an easily manipulative market weren’t viable reasons behind the market’s high premium price.On May 23, bitcoin investor and Adamant Research editor in chief Tuur Demeester stated that the chief information officer of South Korea’s 2nd largest exchange, Korbit, attributed the high premium price of bitcoin in the South Korean bitcoin exchange market to strict capital controls and Anti-Money Laundering (AML) policies.“Talked to the chief information officer of [the South Korean exchange market’s] 2nd largest exchange, says that capital controls are making price arbitrage difficult,” explained Demeester, emphasizing that taking advantage over the South Korean bitcoin exchange market’s premium trading price is difficult.

For small transactions below $10,000, bitcoin traders that are selling the digital currency on local bitcoin exchanges can surely take advantage of the arbitrage.litecoin mining wikipediaHowever, when the amount goes past the $10,000 margin, exchanges require users to comply with strict Know Your Customer (KYC) policies that demand users to explain the source or origin of funds, purpose of deposit or withdrawals, connection to the linked bank account, reason for utilizing South Korean bitcoin exchanges, and more.buy litecoins euIn most cases, even for small withdrawals, bitcoin exchanges require users to conduct face-to-face interviews and submit necessary documents to prove the account ownership.uk bitcoin legislation

Also, because opening bank accounts in South Korea is difficult for foreigners, it is even harder for overseas investors or traders to take advantage of the South Korean bitcoin exchange market’s premium price.intel i5 bitcoin miningA user of one of South Korea’s major bitcoin exchanges also told CCN that he was required to carry out a face-to-face interview, submit documents to prove identity and financial information in order to trade small amounts of bitcoin within South Korea.calculator bitcoin gh/sMore importantly, in November of 2016, the government of South Korea strengthened AML policies to ensure that AML regulations cover a wider range of companies, individuals and organizations outside of certain sectors.free bitcoin lottery hackPreviously, AML policies specifically addressed casinos and financial institutions.most rewarding bitcoin mining pool

The strengthened AML policies cover legal, accounting real estate sectors among other industries.litecoin use cases“[The government] will make efforts for the effective operation of international standards and systems by imposing anti-money laundering obligations on professionals in the non-finance industry and improving the system to identify actual owners of corporations,” said Financial Services Commission (FSC) chairman Yim Jong-yong.litecoin apiSource: cryptocoins news – Bitcoin Price Hits $3,800 in South Korea: Factors of Arbitrage & Rising Demand AML policies average bitcoin price bitcoin exchanges Bitcoin price Cryptocurrency News South Korean bitcoin exchangeThis week, we turn our focus on the best performing currency in 2016: Bitcoin, which more than doubled its value.The question on why cryptocurrencies, such as Bitcoin, are increasingly used and traded has always been something that piques curiosity.

Cryptocurrencies are a type of digital money designed to benefit from the architecture of the internet.Instead of using a recognised financial institution to verify transactions, cryptocurrency transactions go through checks performed by computers on the currency’s network.The users of the computers receive a small amount of the currency as a reward for “mining”.This process is also the main way to produce more of the cryptocurrency.Its digital nature enables inventive ways to use it.For instance, unlike credit cards, which require an account or a good credit, cryptocurrencies can generally be used impersonally.A widening range of retailers and individuals, such as Subway or Microsoft, now accept Bitcoin as a form of payment.While a fee may be incurred for the transaction, it typically remains lower than the fee charged to credit card users.Another widespread practice is the use of minor amounts to tip people on social media and blogs (Reddit, etc.)Some interesting legal issues have come up with Bitcoin.

Governments, attempting to navigate through the unclear waters of the nascent currency, have responded with different degrees of protection around the world.The result is the lack of a unified regulatory landscape for Bitcoin.For example, except for several countries like Bolivia and Ecuador, governments in the Americas tend to take a very hands-off approach to Bitcoin.Europe has a similar story.By contrast, countries in Russia and Asia take a more cautious approach to the new currency.The UK initially imposed a VAT tax on Bitcoin mining, though this was abolished in March 2014, and now the HM Treasury has made a call for information on the digital and crypto currency landscape to make more informed decisions on how regulation should be introduced, and on who should monitor it.Many European countries, including Belgium, Portugal, Greece, Hungary, and Croatia, have merely issued public warnings that there is no government oversight for the currency.But why do these varying levels of regulation matter?

Whereas arbitrage opportunities have largely been struck out over the years, the emerging, nascent status of Bitcoin paves the way for some golden opportunities.The fragmented nature of the Bitcoin market provides the perfect combination of arbitrage opportunities across multiple exchanges, combined with zero transaction costs to be found on Chinese platforms.However, because of the influx of responses from sophisticated traders seeking to capitalise on such opportunities, the most lucrative arbitrage openings are diminishing considerably over time.Traders must also balance the gains from Bitcoin trading against the risks, such as cyber-attacks on Bitcoin exchanges.The Chinese government has also begun to crack down on traders with inappropriate agendas, wary of those using Bitcoin trading as a means to move wealth overseas, conducting money laundering and market manipulation inspections.It is expected that these opportunities will last for a few years until consensus is reached among key countries.