South Korea Skeptical of Bitcoin Reserves Amid U.S. Push

As the U.S. explores groundbreaking moves in cryptocurrency under Donald Trump’s re-elected presidency, South Korea is adopting a cautious stance.

Trump’s promise to establish a national Bitcoin reserve has stirred global debate, but South Korea’s Financial Services Commission (FSC) has made it clear that such a move is not on their agenda.

FSC Chairman Kim Byung-hwan stated that creating a Bitcoin reserve for South Korea is not a priority. “This is a distant topic for us at the moment. We are not ready to take any steps toward establishing a national Bitcoin reserve,” he remarked.

The FSC has decided to observe international developments, particularly how Trump’s Bitcoin reserve plan unfolds, before making any decisions. “We’ll assess how U.S. policies influence global attitudes toward Bitcoin. Our future support for Bitcoin and the crypto sector will depend on how other nations react,” Kim explained, emphasizing that investor protection remains a key priority for South Korea.

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The chairman also voiced skepticism about the economic benefits of cryptocurrencies. While stock markets are seen as vital to economic growth due to their consistent cycles, Kim argued that it remains unclear whether crypto assets offer similar value. “We need to further analyze the impact of cryptocurrencies, which have surpassed stock markets in trading volume, before considering them as reserve assets,” he concluded.

For now, South Korea appears content to wait and see, focusing on safeguarding local investors while keeping a watchful eye on international developments in the cryptocurrency space.

Alexander Zdravkov