Bitcoin’s 43% Arbitrage Trade Is a Lot Tougher Than It Looks

  • Prices in Korea are consistently higher than those elsewhere
  • Local foreign-exchange rules have made profiting difficult

It’s the kind of market anomaly that savvy traders usually devour in fractions of a second: bitcoin prices in South Korea are 43 percent higher than those in the U.S.

Arbitrage 101 says buy in America, sell in Korea, and pocket the difference for a risk-free profit, minus transaction costs.

If only it were that easy.

Julie Verhage, Whanwoong Choi, & Kyungji Cho | Bloomberg

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