Government agencies showed a sharp difference in temperature with the political circle's claim that virtual assets should be strategically turned into assets. There was a conflict between positive opinions that there is a need for review when establishing a virtual asset system and skepticism due to the volatility of coin prices.
On the 24th, Democratic Party of Korea member Ahn Do-geol confirmed the Ministry of Strategy and Finance, the Bank of Korea, the Financial Services Commission, the National Pension Service, and the Korea Investment Corporation (KIC) each their positions on the stockpiling and strategic asset management of virtual assets.
The Ministry of Strategy and Finance responded, “As this is a transitional situation, we plan to examine major trends and issues in the future, focusing on the ‘Virtual Asset Committee.’” The Virtual Asset Committee is a committee where regulatory agencies such as the Financial Services Commission review necessary systems related to virtual assets.
The Financial Services Commission explained, “On January 23, US President Donald Trump established an advisory body on digital asset policy through an executive order,” and “We plan to include the possibility of stockpiling digital assets and the standards for stockpiling in the advisory body report.” It added, “We will monitor global trends and quickly establish a virtual asset regulatory system, including phase 2 legislation.”
The Ministry of Strategy and Finance and the Financial Services Commission are of the opinion that establishing a virtual asset system is a priority. They also left open the possibility of examining strategic asset reserves, etc. The National Pension Service and KIC also claim that virtual asset investment is possible once the system is in place. In fact, the National Pension Service and KIC are making indirect investments by purchasing stocks of companies related to virtual assets.
The National Pension Service has purchased 280,000 shares (about 26 billion won) of Coinbase, the largest virtual asset exchange in the U.S., since the third quarter of 2023. In the second quarter of 2024, it purchased an additional 245,000 shares (about 46 billion won) of MicroStrategy, which holds a large amount of Bitcoin. KIC began investing in Coinbase in the fourth quarter of 2021. In the second quarter of 2024, it also purchased 21,000 new shares of MicroStrategy.
KIC said, “If legal stability is secured through future legislation or revision of laws, we plan to review whether to invest.” The National Pension Service stated, “We have not reviewed investing in virtual assets as strategic assets so far,” but added, “Whether or not to apply virtual assets as investment targets requires the approval of the Fund Management Committee.”
On the other hand, the Bank of Korea is skeptical due to the volatility of virtual assets. The Bank of Korea emphasized, “We are cautious about investing in virtual assets that do not meet the International Monetary Fund (IMF) foreign exchange reserve requirements,” and “Since virtual assets have very high price volatility, it is difficult to view them as assets that meet the purpose of managing foreign exchange reserves.”
Meanwhile, Rep. Ahn said, “The digital asset market should no longer be viewed as a gambling den, but as a core axis of the future financial industry,” adding, “Regulations should be prepared so that the Korean-style digital asset market can take off in a timely manner, such as by stockpiling virtual assets, introducing won-denominated stablecoins, and preparing a tax system.”
