Bitcoin’s Kimchi Premium hit 1.54% on Friday afternoon in Asia, according to data from CryptoQuant. 

The premium, which refers to the price percentage gap between bitcoin (or other cryptocurrencies) in South Korea and elsewhere, has been in a steady decline since mid-April. CryptoQuant’s data compares the bitcoin price in South Korea with that of the U.S. market.

The Kimchi Premium stems from South Korea’s crypto market being closed off to foreign investors, while local investors who buy large amounts of crypto from foreign exchanges for arbitrage may be punished under the country’s Foreign Exchange Transactions Act. 

As South Korea has a limited local supply of crypto, a surge in demand often leads to a wider gap. In March, the premium reached a high of 11.44% after bitcoin …