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RE: I have a question on the STEEM price?

in #esteem6 years ago (edited)

The Korean market has always had a life of its own. I think that's probably because foreigners are restricted from trading on the Korean exchanges. That must be the case because otherwise the arbitrage opportunity would be simply too good. The only way circumvent this would be to have a trusted Korean partner who would sell STEEM on a Korean exchange on your behalf and send you the money out of the country for you to buy more cheaper STEEM on overseas exchanges. The fact that this is not done to an extent large enough to bring the prices close to each other is probably caused by fees charged by the Korean exchanges at the point of cashing out. It might be illegal, too, and constantly receiving large sums from an exchange might trigger some kind of AML alarm at the bank.

[Edit: Indeed, South Korea banned all foreigners from trading on South Korean exchanges in January last year: https://www.forbes.com/sites/elaineramirez/2018/01/23/why-south-korea-is-banning-all-foreigners-from-trading-cryptocurrency/#17ac71ec7345]

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The arbitrage was one of the reasons I went looking into it. I though there was no way you could see a 20% gap on STEEM with quick, free transactions. It would be too easy to make profit. If you know any south koreans it could still be done with the right set up but would probably need to be kept to reasonable amounts.

Thanks for such a comprehensive answer for me and i can see a lot of other countries bringing in similar measures to the ones in the article. Simple ones first like registering through a bank and providing proper details. They are on the way at some stage.

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