South Korea President Yoon retracts martial law, easing investor concerns and stabilizing the cryptocurrency market.
Tensions Ease in South Korea as Yoon Reverses Decision
South Korean President Yoon Suk-yeol lifted martial law hours after imposing it, calming heightened tensions across the nation. The reversal came after South Korea’s National Assembly overwhelmingly voted to reject the measure, with 190 lawmakers opposing the order. Addressing the situation, Yoon stated:
“I will accept National Assembly’s request and lift it.”
The declaration, which Yoon justified as a response to “threats posed by North Korea’s communist forces,” had caused widespread unease.
Impact on Cryptocurrency Markets
The emergency declaration initially triggered a sharp selloff in the cryptocurrency market. Bitcoin, Ether, and XRP prices plummeted before rebounding after martial law was lifted. According to CoinMarketCap, Bitcoin recovered 2.4%, Ether 3.3%, and XRP 9.2% following the reversal.
The White House expressed relief over the decision, stating:
“We are relieved President Yoon has reversed course on his concerning declaration of martial law.”
Parliamentary Vote Forces Reversal
Under South Korean law, martial law must be revoked if a parliamentary majority votes against it. Yoon’s declaration faced significant backlash, with lawmakers swiftly calling for its removal. The President announced the reversal after an early morning Cabinet meeting.
Yoon initially defended his actions, citing the need to eliminate “anti-state elements” threatening national stability. However, the parliament’s decisive vote shifted the outcome.
Crypto Trading Momentum in South Korea
Before the declaration, South Korea’s retail crypto trading volumes reached their second-highest level of the year on December 2. XRP led with $6.3 billion in volume, followed by Dogecoin at $1.6 billion and Stellar at $1.3 billion. Ethereum Name Service and Hedera rounded out the top five with $900 million and $800 million in trading volume, respectively.
The brief instability caused by martial law led to increased caution among investors, but volumes showed resilience after the reversal.
A Sigh of Relief for Markets
The swift reversal of martial law provided much-needed stability, preventing further turmoil in the cryptocurrency sector. Market recovery signaled investor confidence in South Korea’s regulatory environment despite the initial shockwaves.
Yoon’s decision underscored the importance of balancing national security concerns with economic stability. The reversal also highlighted the role of democratic institutions in addressing contentious issues swiftly.
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