South Korean Crypto Markets Crash After President Declares Martial Law
South Korea’s crypto market has sharply declined following President Yoon Suk-yeol's declaration of emergency martial law, a move aimed at protecting the country from perceived threats from North Korea. This development has caused significant disruptions in global financial markets and raised concerns within the crypto sector.
South Korea’s Crypto Markets Plunge Amid Unexpected Declaration
President Yoon justified the martial law as necessary to counter “threats from North Korea’s communist forces” and eliminate “anti-state elements.” This declaration marks the first instance of emergency martial law in South Korea since 1980, indicating serious implications as it entails military control over civilian government functions.
Following the announcement, major exchanges such as Upbit, Bithumb, and Coinone experienced substantial declines in digital asset values. Bitcoin (BTC) dropped by 12% on Upbit, while Tether (USDT) fell to 1,200 Korean won (KRW), a loss of approximately 84 cents. Popular altcoins like XRP, Shiba Inu (SHIB), and Dogecoin (DOGE) also faced double-digit losses.
XRP, which relies heavily on South Korean market liquidity, saw a 7.7% decrease to $2.499 according to CoinMarketCap. The Upbit Market Index, tracking the top 30 tokens by market cap, plummeted by 13.28% in one day, reflecting a significant erosion of investor confidence due to the martial law announcement.
Upbit’s Trading App Crashes Amid Surge in User Activity
Following the martial law declaration, the Upbit mobile trading app became inaccessible due to a surge in user traffic as traders rushed to withdraw their funds amidst the market downturn. The app's infrastructure could not support the influx, leading to frustrations as users were unable to execute trades in real time.
The drastic price drops on South Korea's major exchanges align with a global trend influenced by geopolitical tensions. Given the crypto markets' sensitivity to news and events, ongoing volatility is anticipated, particularly in politically unstable regions. The future of the South Korean crypto market remains uncertain under military-backed control, with unclear implications for market stability.