Military Rule Sends South Korean Crypto Market into Tailspin

On December 3, the South Korean crypto market plummeted following the imposition of martial law in the country. This was reported by journalist Colin Wu.

Breaking: The all Korean won trading pairs on Korean exchanges suddenly began to plummet, with Bitcoin even falling to $79,167 and XRP falling to $1.89. They are now recovering. https://t.co/ddi2RcNnXu & https://t.co/knueGmuiE6 pic.twitter.com/8umh9AVe3D

— Wu Blockchain (@WuBlockchain) December 3, 2024

“I declare martial law to protect the free Republic of Korea from the threat of North Korean communist forces, to eradicate the vile pro-North Korean anti-state forces,” stated South Korean President Yoon Suk Yeol in his televised address.

Following the news, charts for most trading pairs with the Korean won declined. Bitcoin’s price on the country’s largest exchange, Upbit, fell below $80,000, while the stablecoin USDT reached $0.89.  

The Upbit Market Index — a cumulative measure of market dynamics for the 30 largest assets on the Upbit exchange — dropped by 13.2%. 

The journalist noted that all crypto exchanges in the country ceased operations, making “trading now virtually impossible.”

The imposition of martial law by the South Korean president entails the transfer of civilian government functions to direct military control, the suspension of parliament, and several other restrictions.

According to the BBC, the decision is linked to disputes between the ruling party and the opposition regarding the state budget for the next year.

Earlier, on December 2, the daily trading volume of cryptocurrencies in South Korea reached $18 billion, surpassing the stock market’s equivalent figure by 22%.