Catenaa, Monday, March 17, 2025-The Bank of Korea (BOK) confirmed Sunday it has no plans to include bitcoin in its foreign exchange reserves, citing volatility and International Monetary Fund (IMF) guidelines.
Responding to a National Assembly inquiry, the central bank said bitcoin’s price fluctuations could lead to high transaction costs when converting it into cash.
The BOK also noted that the IMF mandates prudent management of liquidity, market, and credit risks, making bitcoin an unsuitable reserve asset.
The announcement follows U.S. President Donald Trump’s March 6 executive order to establish a Strategic Bitcoin Reserve, leveraging government-seized BTC. While some nations have since explored similar initiatives, the BOK remains aligned with Japan, Switzerland, and the European Central Bank in rejecting bitcoin reserves.
Despite its stance on reserves, South Korea is gradually easing its strict crypto regulations. The country’s financial watchdog is working to lift a ban on institutional crypto trading and is drafting a second legal framework to regulate stablecoins.
