South Korea's crypto markets saw chaos when President Yoon Suk Yeol unexpectedly declared martial law, leading to a massive divergence in local and global prices. Bitcoin fell sharply, causing a frenzy on exchanges as users took advantage of the unusual price drop.
The political tension escalated as military forces moved towards Parliament, cited by President Yoon as a measure against "pro-North Korean anti-state forces." This sent the South Korean economy into temporary disarray, opening brief crypto arbitrage opportunities due to the surged Won price against USD.
On local exchanges, Bitcoin's price dropped significantly, linked to panic selling and the heightened USD/KRW exchange rate. This intense fluctuation saw whales placing large USDT orders, with over $163 million entering Upbit alone. Rapid legislative moves challenged the situation, quickly restoring stability.
Interestingly, prediction markets like Polymarket reacted, offering pools on President Yoon's potential resignation. Such events shed light on the tight link between political stability and crypto market dynamics, crucial for high adoption regions like South Korea.
Amidst all, South Korea sees a notable crypto adoption surge, yet exchanges like Upbit continue facing regulatory challenges. Past flaggings for KYC breaches and alleged monopolistic practices highlight persistent scrutiny. Additionally, delistings on exchanges further complicate the market landscape, impacting investors significantly.
