The South Korean government is facing internal discord over the potential creation of a strategic Bitcoin reserve. Democratic Party MP Ahn Do-geol highlighted that various ministries and agencies have differing positions, reflecting the complexity of implementing a national crypto policy.
A Call for Unified Crypto Governance
Former Vice Minister of Strategy and Finance Ahn Do-geol stressed the need for a crypto governance framework with minimal regulations to promote the domestic virtual asset market's growth. He also stressed the need for clear guidelines for security token issuers, the introduction of crypto spot ETFs, and the development of fiat-won stablecoins. Ahn called for increased corporate and foreign involvement to strengthen South Korea's position as a crypto hub. He also emphasized the importance of a tax system tailored for traders to ensure the Korean virtual asset market develops at the right pace.
Conflicting Opinions Among Ministries
The Ministry of Strategy and Finance has taken a wait-and-see approach, describing the crypto sector as being in a 'transitional period.' The ministry plans to monitor global trends and review recommendations from the Virtual Asset Committee, which advises the Financial Services Commission (FSC). Meanwhile, the Bank of Korea (BOK) has expressed skepticism, citing high price volatility and Bitcoin's failure to meet the IMF's criteria for foreign exchange reserves. Conversely, the Financial Services Commission (FSC) appears more open, exploring the potential of stockpiling digital assets and working on setting standards for this.
Sovereign Wealth Funds and Pension Services Take Cautious Stance
The National Pension Service (NPS) has distanced itself from the discussions, stating it has 'not yet reviewed investing in crypto as a strategic asset' and will act only based on directives from its fund management committee. Similarly, the Korea Investment Corporation (KIC), South Korea's sovereign wealth fund, indicated it will consider Bitcoin investments only after relevant legislation is enacted. However, both NPS and KIC have already indirectly invested in crypto assets by purchasing shares in companies like Coinbase and MicroStrategy.
While some government bodies advocate caution, others are pushing for progressive steps to establish South Korea as a leader in the crypto industry. With increasing global momentum toward digital asset adoption, South Korea's eventual stance on Bitcoin reserves could significantly influence its future role in the crypto market.
