South Korea’s Financial Services Commission (FSC) is taking a cautious stance on digital assets amid growing calls to establish a national Bitcoin reserve.
Speaking to Newsprime on November 24, FSC Chairman Kim Byung-hwan described the idea of a Bitcoin reserve as “a distant story at the moment.” Kim acknowledged the proactive crypto strategies emerging in countries like the U.S. but stressed the importance of focusing on integrating South Korea’s digital asset market with its existing financial systems.
In July, Senator Cynthia Lummis proposed a bill in the U.S. Senate that aims for the U.S. government to acquire 1 million Bitcoins over five years and establish a reserve that would be maintained for at least two decades. The Senator argued that this reserve could help alleviate the country’s growing debt and also strengthen the dollar’s status as the world’s reserve currency.
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“We need to observe how the U.S. moves forward,” Kim said, “but right now, our priority is ensuring that digital assets and traditional finance work seamlessly together.”
While Kim noted increasing enthusiasm for cryptocurrencies, he raised concerns over their volatile nature. He pointed out that trading volumes in virtual assets have recently outpaced South Korea’s KOSPI and KOSDAQ stock market indexes, warning against the risks of unfair trading practices. Kim also emphasized redirecting capital to traditional markets, stating that the rapid price increases in virtual assets demand vigilant monitoring.
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Globally, Bitcoin is gaining traction as a strategic reserve asset, with several nations considering its incorporation into their financial systems. Poland presidential candidate Sławomir Mentzen pledged to establish a strategic Bitcoin reserve if he wins the 2025 election. Also, bitcoin proponents in Switzerland are pushing for the Swiss National Bank (SNB) to include Bitcoin in its reserves. A campaign led by the think tank 2B4CH wants the Swiss Federal Constitution to be amended to achieve this. The campaign requires over 100,000 signatures from Swiss citizens within 18 months, a threshold that proved challenging in a previous attempt in October 2021.
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