In a dramatic turn of events, South Korean President Yoon Suk Yeol has lifted the martial law declaration that he imposed less than six hours earlier. The abrupt announcement, made in response to tensions reportedly linked to threats from North Korea, sent shockwaves through both domestic politics and global financial markets.
During an emotional Cabinet meeting held at around 4:30 AM local time, President Yoon stated, “I will accept the National Assembly’s request and lift it.” His decision comes after a vote where around 190 lawmakers from the National Assembly’s 300-member parliament rejected the martial law order, reflecting the will of the people and their representatives. Under South Korean law, such a declaration must be revoked if the parliament votes against it.
The initial declaration of martial law was intended to address what Yoon characterized as “threats posed by North Korea’s communist forces.” In a live television address, he described it as an “unavoidable measure” to ensure the safety and freedom of the South Korean people. However, the sudden announcement ignited fears and concerns both within South Korea and among international observers.
Following the reversal of martial law, the cryptocurrency markets have shown signs of recovery. Major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and XRP all experienced significant recoveries of approximately 2.4%, 3.3%, and 9.2% respectively. This recovery represents a claw-back from losses incurred immediately after the martial law declaration, which had struck fear into traders.
- Bitcoin (BTC): 2.4% recovery
- Ether (ETH): 3.3% recovery
- XRP: 9.2% recovery
The White House expressed relief at the reversal, indicating that it welcomed Yoon’s decision to honor the democratic process and the National Assembly’s votes. A spokesperson stated, “We are relieved that President Yoon has reversed course on his concerning declaration of martial law and respected the ROK National Assembly’s vote to end it.” This situation has underscored the delicate balance of governmental power and the importance of democratic oversight in South Korea.
Coinciding with this political turmoil was a surge in retail crypto trading volumes in South Korea just a day earlier. On December 2, trading reached its second-highest levels of the year, highly driven by traders’ enthusiasm for various altcoins. Notably, XRP recorded a staggering $6.3 billion in volume on that day, showcasing the continued vibrant presence of cryptocurrencies in the South Korean market despite regulatory uncertainties.
As it stands, the outcome of this political upheaval and market dynamics highlights not only the vulnerabilities of cryptographic assets to geopolitical events but also the resilience and volatility characterized within these markets. Observers will be keenly watching to see how these developments unfold in the coming days.
