South Korea martial law declaration triggers fall in crypto market
On Tuesday, Yoon Suk-yeol, the president of South Korea, declared emergency martial law, which caused cryptocurrency prices to plummet on Upbit, the country's biggest cryptocurrency exchange.
Following the announcement, the value of the South Korean won fell to its lowest level in two years. In addition, due to a spike in traffic, Upbit's mobile trading app is currently unavailable as of the time of writing.
President Yoon declares emergency martial law
CNN reports that President Yoon declared emergency martial law in a televised speech in order to "protect a liberal South Korea from the threats posed by North Korea's communist forces and to eliminate anti-state elements." He said that the National Assembly was acting like a monster that was determined to destroy liberal democracy and that South Korea was "on the verge of collapse."
According to the Yonhap news agency, all military units in the South, which is still technically at war with the nuclear-armed North, have been instructed to bolster their emergency alert and readiness postures since martial law was imposed. MPs are not allowed to enter the National Assembly because the entrance has been sealed, the news agency added.
Emergency martial law was imposed after Yoon's approval rating fell to 19 percent in the most recent Gallup poll last week, with many people expressing discontent with his management of the economy and his wife, Kim Keon Hee, and the controversies surrounding her.
Opposition Democratic Party leader Lee Jae-myung has condemned the action as unconstitutional and warned that it may cause more instability.
What is martial law in South Korea?
In South Korea, the term "martial law" refers to the direct military takeover of civilian government operations, usually in reaction to a serious threat to public order. The last time martial law was declared in South Korea was in 1980, according to local news source Hankyoreh. Under martial law, all media outlets and publishers will be strictly regulated by the government, and violators may be arrested without a warrant.
Majority of cryptocurrencies fall dramatically
The announcement caused the majority of cryptocurrencies to plummet on the most popular cryptocurrency exchanges in the country, Upbit, Coinone, and Bithumb. At one point, Tether USDT fell to 1,200 Korean won, or about 84 cents, while Bitcoin fell about 12% on Upbit. The majority of altcoins, including Dogecoin, Shiba Inu, and Ripple XRP, also saw double-digit declines.
South Korea stocks plunge
Markus Thielen, the founder of 10x Research, stated in a report dated December 2 that South Korean traders were fascinated with a number of altcoins that had "high momentum" and that retail cryptocurrency trading volumes hit their second-highest level of the year on that day.
According to 10x Research, South Korea's retail cryptocurrency trading volumes reached $18 billion in the past day, outpacing the country's stock market by 22%. However, a few hours later everything changed. Investors and analysts were taken aback by South Korean President Yoon Suk Yeol's sudden declaration of emergency martial law, which caused a steep decline in South Korean stocks listed in the US and the UK.
Following the news, the biggest online retailer in South Korea, Coupang, saw a 6% decline in its stock price, indicating investor apprehension over the political unrest brought on by the imposition of martial law. The largest semiconductor manufacturer in the world, Samsung Electronics, saw a 7% decline in its shares listed in the UK as investors anxiously watched the political crisis' effects.
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