Crypto market in South Korea collapses under martial law, according to reports
South Korea's cryptocurrency market has been hit hard by the political instability in the country. The declaration of martial law on December 3, 2024, has cast uncertainty over the market, causing a significant drop in prices.
The political disputes between the ruling party and the opposition over next year's national budget have been the primary cause of this instability. According to the BBC, this move to declare martial law stems from these disputes. The declaration has halted parliamentary operations in South Korea.
The South Korean government agency responsible for this decision was the Military Junta, and this announcement was made on May 16, 1961.
The cryptocurrency market in South Korea has been affected by the political climate and regulatory environment for some time. On December 2, 2024, the daily trading volume in South Korea reached $18 billion, surpassing the stock market's turnover by 22%. However, the martial law has caused a plummet in the market.
The prices of major cryptocurrencies like Bitcoin and XRP have fallen significantly. Bitcoin's price on the country's largest exchange, Upbit, fell below $80,000, while XRP's price on the Korean won trading pairs dropped to $1.89. The stablecoin USDT also dropped to $0.89 on the Upbit exchange.
The market plummet has also affected the Upbit Market Index (UMI), which declined by 13.2% following the market drop. All cryptocurrency exchanges in South Korea have suspended operations, making trading virtually impossible.
South Korea has consistently ranked as one of the leading markets for cryptocurrency trading globally. Platforms like Upbit and Bithumb are among the world's most active exchanges. The cryptocurrency market in South Korea reached a record trading volume the day before the declaration of martial law.
The political climate and regulatory environment in South Korea often create volatility in the cryptocurrency market, as evidenced by this latest development. Both Bitcoin and XRP are now recovering from their respective lows, but the market remains uncertain due to the ongoing political instability.
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