The price of Bitcoin in South Korea surged to a 27-month high on Wednesday, reflecting strong buying pressure from local investors. The premium on Bitcoin traded on South Korean exchanges compared to the global market, known as the "Kimchi Premium," reached 10.32% as a result.

Bankrupt cryptocurrency lender BlockFi has reached an in-principle settlement of $874.5 million with the estates of collapsed crypto exchange FTX and its sister firm Alameda Research.

The British government has launched a consultation seeking public feedback on its plans to implement the Organization for Economic Co-operation and Development's (OECD) new crypto reporting framework.

Top stories in the Crypto Roundup today:

• Bitcoin’s Kimchi Premium Reaches 27-Month High
• BlockFi Reaches $874.5 Million Settlement with FTX and Alameda Research Estates
• UK Seeks Public Input on Crypto Reporting Framework Implementation
• Digital Asset AUM Rose 27% to $65bn in February

Bitcoin’s Kimchi Premium Reaches 27-Month High

The price of Bitcoin in South Korea surged to a 27-month high on Wednesday, reflecting strong buying pressure from local investors. The premium on Bitcoin traded on South Korean exchanges compared to the global market, known as the "Kimchi Premium," reached 10.32% as a result.

This phenomenon arises from several unique factors in the South Korean cryptocurrency market. Local regulations restrict foreign investors from directly trading on Korean exchanges, while domestic investors could face penalties for purchasing large amounts of crypto from foreign markets for arbitrage purposes under South Korea’s Foreign Exchange Transaction Act.

These factors create a restricted domestic crypto market, where growing local demand can outpace supply, leading to price premiums compared to the global average. Against the Korean Won, BTC is up over 200% over the past year.

The recent surge in the Kimchi Premium, comes as the price of Bitcoin touched its previous all-time high on Tuesday in the U.S. and surpassed it in a number of other fiat currencies, before enduring a correction.

BlockFi Reaches $874.5 Million Settlement with FTX and Alameda Research Estates

Bankrupt cryptocurrency lender BlockFi has reached an in-principle settlement of $874.5 million with the estates of collapsed crypto exchange FTX and its sister firm Alameda Research.

The agreement, subject to court approval, would see BlockFi receive $185.2 million in claims against FTX, representing funds held in FTX accounts at the time of its collapse in 2022. The firm would also receive $689.3 million in claims against Alameda Research.

According to a recent court filing, BlockFi’s customers are expected to receive the claims at full value as long as FTX fulfills its own bankruptcy distribution goals. Notably, $250 million of the settlement is categorized as a secured claim, backed by collateral to prioritize its payment once FTX's reorganization plan is approved by creditors.

The settlement comes as both BlockFi and FTX navigate their separate Chapter 11 bankruptcy proceedings. In December 2023, FTX submitted an amended reorganization plan aiming to maximize benefits for creditors and stakeholders, while last month, BlockFi secured another settlement with bankrupt crypto hedge fund Three Arrows Capital, with details remaining undisclosed.

UK Seeks Public Input on Crypto Reporting Framework Implementation

The British government has launched a consultation seeking public feedback on its plans to implement the Organization for Economic Co-operation and Development's (OECD) new crypto reporting framework.

The Treasury, the government's finance arm, projects that adopting the framework could generate additional tax revenue, ranging from £35 million (roughly $45 million) in 2026-27 to £95 million (roughly $120 million) in 2027-28.

The OECD framework is an update to the existing framework on offshore accounts, aiming to combat tax evasion by facilitating the exchange of crypto transaction information across different jurisdictions.

Implementation is expected to begin in 2026, while the consultation period will run until May 29, 2024. The government will use the feedback it receives and publish a response and seek further public input on draft regulations.

BlackRock and Fidelity ETF Volumes Rise Over 500% Month-on-month

In February, trading volumes of cryptocurrency investment products continued to climb, with average daily aggregate volumes reaching $1.86 billion, a 14.85% increase from the previous month.

This rise, although less dramatic than January’s spike, reflects a steady upward trend and strong investor participation, largely driven by the positive market reaction to ETFs in the U.S.

Among the ETFs, BlackRock’s IBIT, Fidelity’s FBTC, and Ark & 21Shares’ ARKB dominated the trading volumes, registering a month-over-month growth of 569%, 509%, and 574% respectively. VanEck’s HODL ETF also saw an impressive increase in volume, jumping 2,000% to $584 million.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Digital Asset Management Review.

State of the Crypto by Top Tier Exchange Volume

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