South Korean Cryptocurrency Market Collapses Under Martial Law, According to Reports
South Korea's cryptocurrency market experienced a significant decline on December 3, 2024, following the declaration of martial law by President Yoon Suk Yeol. The political instability, stemming from disputes between the ruling party and the opposition over next year's national budget, has cast uncertainty over the local crypto market.
The nation, which consistently ranks as one of the leading markets for cryptocurrency trading globally, saw major exchanges such as Upbit and Bithumb plunge into chaos. The Upbit Market Index (UMI) declined by 13.2%, while trading on these exchanges has virtually come to a standstill.
The political disputes led to the declaration of martial law, which halted parliamentary operations and transferred civilian government functions under military control. Several other restrictions were imposed as a result of the martial law declaration.
The decline in the South Korean cryptocurrency market was evident across various trading pairs involving the Korean won. The stablecoin USDT dropped to $0.89 on Upbit, while Bitcoin's price on the country's largest exchange fell below $80,000. XRP on Korean exchanges fell to $1.89.
On December 2, 2024, the daily cryptocurrency trading volume in South Korea reached $18 billion, surpassing the stock market's turnover by 22%. However, the political climate and regulatory environment often create volatility in the South Korean cryptocurrency market, as evidenced by this latest development.
At the moment, it is unclear what measures, if any, the South Korean government has taken to resume crypto trading operations after the imposition of martial law. The search results do not provide any information on this matter.
The declaration of martial law has had a ripple effect, making trading virtually impossible on South Korean cryptocurrency exchanges. The nation's political turmoil has left the crypto market in a state of uncertainty, with investors and traders closely watching developments for signs of recovery.
