Since December 2017, the government of South Korea has been tackling the market of crypto money. Recently, it was announced that by the end of January a range of South Korean banks would get the right to register real-names accounts to match them with the ones on exchanges. But at the same time, eight largest crypto trading platforms in the country have been penalized for violating security requirements.
Even against such background, the state of cyber money exchanges in South Korea remains unidentified and unregulated. Country’s authorities have been very skeptic about these platforms amid the growing fears regarding the burst of the ‘crypto bubble.’ And recently another troubling incident related to cyber money exchanges has been revealed.
According to the reports of regional media, the country’s National Pension Fund (service) has been obliquely piling billions of national public currency won in crypto exchanges. For instance, among them, there were Bithumb, Upbit, as well as Korbit.
The placeman at country’s pension service Lee Chan-yeol was quoted by News1, saying:
“The National Pension Fund invested 2.6 billion won in four cryptocurrency exchanges through two venture capital funds.”
It was noted that one of the VC funds piles intro operators of Bithumb and Korbit, whereas the other one invests in Coinplug, as well as Upbit.
It is important to emphasize that the South Korean Pension Service is in the top-3 of most substantial funds of this type in the entire world. As it is mentioned on its website, the fund assists the country’s citizens in protecting their resources for retirement.
Interestingly, all this happened amid efforts of the country’s authorities to make regulations on cyber money exchanges stricter. Some weeks ago the South Korean Ministry of Justice announced about its plans to work on the bill to prohibit crypto trading. This notification stirred up a turmoil on the market, and later the presidential Blue House representatives tried to calm down the situation saying that the decision on the trading bill was not final.
Red Light From the Government
Korean authorities are not supportive when it comes to piling into cryptos. For instance, out of 700 of medium-sized funds, only 28 invest in cyber money swapping services operators, according to Yonhap information. These resources are run by VC companies.
Last week the country’s finance authorities even officially stated that these 16 VC firms, which operate funds, piled around $38.7 into the crypto market. The Ministry of Strategy and Finance of South Korea also called it improper for such a number of VC firms to invest in 28 ‘venture funds.’