YEREVAN (CoinChapter.com) — Yoon Suk Yeol, South Korea’s impeached president, was arrested on Jan. 15. This marked the first time a sitting president has been detained in South Korea. The Corruption Investigation Office executed the warrant at 10:33 am local time.
A team of 80 police officers and investigators carried out the arrest at Yoon’s residence. Images on platforms like X showed Yoon entering a vehicle for questioning. Yoon’s arrest came after his controversial martial law declaration.
Cryptocurrency Market Disrupted by Martial Law
Yoon’s martial law declaration significantly affected South Korea’s cryptocurrency market. Platforms like Upbit faced a liquidity crisis, with Bitcoin (BTC) prices falling to 92 million Korean won (around $65,000). This price was $30,000 lower than Bitcoin’s value on most global platforms at the time.
The market has since stabilized, with cryptocurrencies paired with the Korean won, including Bitcoin, recovering to normal trading levels.
Bitcoin Price Trends in KRW. Source: Upbit
Cryptocurrency Trading Volume Peaks
On December 2, the day before martial law was announced, South Korea recorded its second-highest cryptocurrency trading volume for 2024. Traders were actively buying and selling high-momentum altcoins such as XRP, Dogecoin (DOGE), and Stellar (XLM).
South Korea’s Evolving Cryptocurrency Regulations
South Korea has implemented a comprehensive legal framework to regulate cryptocurrencies, aiming to balance technological innovation with consumer protection. Key legislation includes the Electronic Financial Transactions Act and the Act on Reporting and Use of Specific Financial Information, which mandate real-name verification, anti-money laundering (AML) procedures, and cybersecurity measures for digital asset transactions. The Financial Services Commission (FSC) enforces these regulations, ensuring compliance among virtual asset service providers (VASPs) such as exchanges and wallet services.
In response to the growing prominence of digital assets, South Korea plans to introduce the Digital Asset Basic Act (DABA) by 2024. This legislation aims to provide a unified regulatory framework, addressing areas like security token offerings and initial coin offerings (ICOs), which were previously restricted. Additionally, the government intends to implement a 20% tax on cryptocurrency gains, reflecting its commitment to integrating digital assets into the broader financial system while safeguarding against illicit activities.
Yoon Suk Yeol’s Martial Law Declaration Overturned
Yoon Suk Yeol justified his controversial martial law declaration by citing “threats from North Korea’s communist forces” and the need to “eliminate anti-state elements.” However, the South Korean legislature overturned the decree within six hours.
Notably, the legislature impeached Yoon 11 days later, on Dec. 14, intensifying public and political scrutiny. Above all, while no charges have been officially filed, leading an insurrection in South Korea could result in life imprisonment or death.
