Believe it or not, this is another chapter in the strange, but passionate, relationship between South Korea and cryptocurrencies. It seems that the South Korean National Pension Fund (NPS) has been investing indirectly billions of won in cryptocurrency exchanges. The exchanges include Upbit, Bithumb, and Korbit.
South Korean Official Agency Invested In Crypto Exchanges
Divergences among official governmental agencies about cryptocurrencies keep appearing in South Korea. It seems that South Korea’s NPS, the third largest pension fund in the world, has invested 2.6 billion won in four cryptocurrency exchanges. The NPS fund is valued at 618 trillion won as of October 2017.
The fund is intended to help secure the retirement benefits of the Korean citizens. In addition to it, it will allow to have income security in case of retirement, disability or death. According to Lee Chan-yeol, an NPS officer, ‘the National Pension Fund invested 2.6 billion won in four cryptocurrency exchanges through two venture capital funds.’
The Ministry of Strategy and Finance informed the total amount invested by 16 venture investment firms. They have invested around 41 billion won in the virtual currency market. The Ministry warned that ‘it is inappropriate for the 16 investment ventures to invest in the 28 ventures funds.’
Since the interest for cryptocurrencies increased substantially, the South Korean government has been discouraging investors to bet in the cryptocurrency market. But South Korea is the third largest investor in the cryptocurrency world after Japan and the United States. The cryptocurrency market has a deep impact in the economic life of South Korea as well as in other countries. Japan, for example, saw its GDP increased by 0.3% thanks to cryptocurrencies.
Different measures have been taken by the South Korean government in order to regulate the cryptocurrency market. Cryptocurrency exchanges must have a strong Know Your Customer policy as well as Anti Money Laundering policies. In addition to it, they must follow specific requirements in order to operate. Accounts without identification are not able to keep operating in the market and foreign citizens do not have the possibility to invest in cryptocurrencies in South Korea.
Image sourh: CryptoCoinMastery