If the United States has recourse to its Bitcoin reserves, South Korea could be left behind in terms of crypto
- South Korea runs the risk of falling behind, while the USA hoard Bitcoin for strategic financial positioning.
- Government authorities debate fundamental questions, while millions of older Korean cryptocurrencies have long since accepted growing portfolios.
Who would have thought that a country that is as active in the world of technology as South Korea in the introduction of digital assets such as Bitcoin into Behind would be advised? The former deputy minister of strategy and finance, Ahn Do-Geol, recently pronounced a rather harsh warning.
He said the United States had been faster and even started to hoard Bitcoin as part of their financial strategy. Meanwhile, South Korea still seems to hesitate and even to be shared with the next steps within the government.
JUST IN: FORMER FINANCE MINISTER WARNS KOREA IS FALLING BEHIND AS U.S. STOCKPILES BITCOIN, URGES GOVERNMENT TO ADOPT $BTC.
Source: The Bitcoin Historian pic.twitter.com/hjCLkDV4Ka
— Mario Nawfal’s Roundtable (@RoundtableSpace) March 25, 2025
Other Horten Bitcoin – South Korea watches standless
According to Ahn Do-Geol, Korea should not only be a spectator on this global trend. He asked the government to consider Bitcoin as an alternative foreign exchange reserve. This concept may sound bold, but if you look at the steps of the USA that have started to form a kind of “strategic Bitcoin reserve”, it makes sense that ancestor is of the opinion that your country should do the same.
Imagine if one day the traditional exchange rate faltered or inflation gives up the value of the Fiat currency, Bitcoin could be a kind of digital “emergency reserve” that may sound like the premise of a dystopian film, but in fact other countries are already beginning to move in this direction.
Korea runs the time of it
Unfortunately, the idea was not welcomed by everyone involved. The Bank of Korea (BOK) still represents conservative principles. It is concerned about the price volatility of Bitcoin, which can cause headaches. It is also of the opinion that Bitcoin is not suitable as a means of payment because it does not correspond to the standards set by the International Monetary Fund (IMF).
However, the Financial Service Commission (FSC) seems to be more open. She said that the development of a regulatory framework for cryptocurrencies is something that must be done immediately. Even if you have not agreed on Bitcoin as a reserve, you are at least aware that cryptocurrencies can no longer be treated just as a temporary trend.
Fiu is backwards robe – ancestor pushes forward
While Ahn was demanding a new policy, the Financial Intelligence Unit (FIU) actually moved in the opposite direction. Instead of creating space for cryptocurrencies, it has started to sanction foreign stock exchanges that are not officially registered in Korea.
According to the CNF report, this sanction is not just a formal warning, but it can also be made in the form of a ban on access to the stock exchange website itself. Some of the big names that have been sanctioned are Bitmex, Kucoin, Coinw, Bitunix and KCEX.
This step seems to indicate that the South Korean government pulls the emergency brake at a time when some parties, such as Ahn, want to push through the accelerator.
Politicians argue – and almost 10 million Koreans are committed to crypto
Despite regulatory tensions and political changes, the Korean citizens are becoming increasingly active. There are currently more than 9.6 million crypto investors in South Korea. This number increased by more than 50 % compared to the previous year.
It is even more surprising that one of four investors from the 50-year-old age group and older comes. They not only try to buy change, but many of them keep large portfolios.
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