The South Korean National Pension Fund Has Pumped Billions Into Cryptocurrency Exchanges
South Korea has been on the fence about things pertaining to cryptocurrencies such as ICOs and trading for a while. It is thus surprising that the South Korean National Pension Fund has been investing large sums of money in cryptocurrency exchanges.
The South Korean National Pension Service (NPS) has reportedly invested billions of Won into crypto exchanges such as Korbit, Buthumb, and Upbit. The matter was revealed by a local media outlet at around the same time that regulators in the country have been coming up with new governance measures for the cryptocurrency market. The Asian country’s Ministry of Justice is also working on a bill that will institute a ban on cryptocurrency trading in the country.
South Korean news outlet called News1 quoted NPS officer Lee Chan-yeol’s statement: “the National Pension Fund invested 2.6 billion won in four cryptocurrency exchanges through two venture capital funds."
The South Korean NPS is reportedly the third biggest pension fund in the world. It was launched in 1987 as a financial vehicle that would help the country’s citizens to prepare for things such as retirement, disability or even death by saving a significant amount of their salary. The program was thus initiated to enhance the welfare of South Korean citizens.
The NPS is not the only South Korean organization that has been investing in cryptocurrency exchanges. The country’s Ministry of Strategy and Finance recently revealed that 16 venture firms in South Korea have invested about 41.2 billion won ($38.7 million) in the digital currency market. The 16 venture investment firms operate 28 out of 700 of the registered medium-sized funds in South Korea. The country’s government has been trying to discourage small and medium-sized funds from investing in crypto exchanges.
The fact that the South Korean Pension Fund identified cryptocurrency-related investments is proof that there are opportunities that cannot be ignored. However, there are also risks and the fact that they used pension money makes it even riskier. Fund managers in the NPS make decisions on which investment options are ideal. It is not clear whether the authorities in the country are okay with the NPS investing in cryptocurrency exchanges.
South Korea has been hard at work trying to get as much control as possible on cryptocurrency dealings. The recent measures include regulations that help prevent money laundering. The country is also working on the adoption of a real-name system that will be used by banks to replace the currently existing virtual account system. The new system will most likely be implemented before the end of the month.