I mean while it will be possible, the big problem is moving the money out of Korea and into the United States. As I doubt the Korean government is going to want Crypto gained Fiat cash moving in and out of their banking systems, seems like a waste for them to let people flood their markets just to kill the price. It's probably best for them at the moment to slowly let arb traders in, as at the moment if they were to let them in it would kill the traders who make money in Korea and provide taxes for the government over there.
But yeah, try your luck dude, worst case you won't be able to do it.
Topic: Arbitrage??? - page 2. (Read 286 times)
Thanks for all the feedback guys! will do some research and try to make the most of this opportunity
So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??
I think there's nothing wrong with that. arbit actually buys somewhere cheap and sells it elsewhere for a higher price. with today's universal internet technology will make it easier for users to trade. currently limiting bitcoin trading is a regulation of each country allowing or not to trade bitcoin. if in my opinion it also can still be used as long as exchange and link is still open. of course by trading clandestinely. in principle it depends on you, whether you will comply with the regulations in your country or you will violate it. but I think it's okay to do that, it's all depend on you.
Best advice I can think of: try it with a relatively small sum of money, 1st. There will be wire transfer fees and possibly taxes to be paid when moving fiat back to an exchange to buy crypto. In some cases, those taxes and fees might be higher than arb gains. Also the amounts which can be moved via wire transfer could be capped or have scaling fees which increase substantially the more capital is moved.
Good luck to you, I hope you can pull it off.
On the negative side, I remember reading at least one news article where it was said banks and regulators would begin to "crackdown" on "nefarious activities" like bitcoin arbitrage.
Can't say I've seen details on it so far, if indeed it will happen. African exchanges like http://golix.com could also provide good arb opportunity if a way could be found to make it work.
Good luck to you, I hope you can pull it off.
On the negative side, I remember reading at least one news article where it was said banks and regulators would begin to "crackdown" on "nefarious activities" like bitcoin arbitrage.
Can't say I've seen details on it so far, if indeed it will happen. African exchanges like http://golix.com could also provide good arb opportunity if a way could be found to make it work.
So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??
A lot of things might go wrong. First you have to check with both laws. As cryptocurrency laws gets stricter and stricter in every country. You should also check for taxes, for sure you will have to pay taxes at some point. Next is the financial institution you will use to store your fiat, if you buy from the US that means you need a bank account to buy if not you can do cash but that's too burdensome. Then you need to sell the crypto in Korea, how do you propose to send the fiat from Korea to the US? Then that means you need an intermediary. That could eat up profits and also get unnecessarily attention from the government.
Unless and until you are physically traveling to Korea, your plan should work well. However, if your cousin starts sending huge amount of wires out of Korea, some regulatory issue may arise. So first enquire about the acceptable limit of money transfer in a financial year and trade within that limit. Maintain that limit very strictly and you should be good.
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Wow you lucked out having a setup like that, and no I don't think there is anything wrong with that. Perhaps there may be some tax implications but crypto has no borders so whoever cashes it out has to pay taxes not the person who trades. The tax thing may be your one and only issue, I can't think of any others.
So I live in the U.S and I have family in Korea. Obviously there is a great opportunity for arbitrage but was wondering if there were any downsides to it. I would buy bch/btc/eth here then send it to my cousin in Korea and she sells right away for 50-60 percent more. Is there anything wrong with this plan??
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