The cryptocurrency market in South Korea has witnessed a severe drop after President Yoon Suk-yeol declared martial law on Tuesday evening at 10:30 local time.
In a televised address, President Yoon announced that the martial law order was enacted to 'protect free South Korea from threats posed by the communist forces of North Korea and to eliminate traitorous elements,' according to reports from CNN.
Martial law and its impact on the cryptocurrency market
Martial law in South Korea means the military directly controls the functions of the civilian government, usually applied when there is a major threat to public order. The last time the country declared martial law was in 1980, according to Hankyoreh.
Immediately after the announcement, cryptocurrency prices on major exchanges like Upbit, Bithumb, and Coinone plummeted. On Upbit, Bitcoin dropped about 12% at one point, while Tether (USDT) fell to 1,200 won. Altcoins like Ripple (XRP), Shiba Inu, and Dogecoin also saw double-digit declines.
The Upbit Market Index (UMI), which tracks the performance of the top 30 cryptocurrencies by market capitalization on this exchange, fell by 13.28% in the past 24 hours.
Trading app disrupted
Upbit's mobile trading app is currently inaccessible, likely due to a surge in traffic as investors try to trade amid the market's volatility.
Conclusion
The declaration of martial law has caused panic not only in politics but also in the financial and cryptocurrency markets in South Korea. This development is attracting global attention as investors continue to monitor the situation.
