The chairman of the South Korean Financial Supervisory Commission (FSC), Kim Byung-hwan, said that the country will not rush to create a government reserve in bitcoins, as the United States wants to do.

Kim Byung-hwan said that recently the department has repeatedly received questions about the creation of a strategic cryptocurrency reserve – similar to the one that the Cryptocurrency Council promised to create under Donald Trump. Ben Hwang said that the FSC will continue to closely monitor the development of the crypto industry and other countries that decide to follow in the footsteps of the United States and “introduce cryptocurrencies into their own economies.”

“A national reserve in bitcoins is still a long way off. We are taking a cautious approach, so we will see how the situation develops in the US. Now this idea seems far from reality to us. Now one of our priorities is to find a connection between traditional finance and digital assets,” said the FSC Chairman.

Kim Byung-hwan believes that most capital should go to the stock market, not the cryptocurrency market. The official noted an increase in the volume of trading in virtual assets, which already exceeds the volume of the local stock indices KOSPI and KOSDAQ.

“Digital assets can grow rapidly in a short period of time, and the crypto market itself is extremely volatile. Therefore, it is important to prevent unfair trade and this issue needs to be given special attention,” explained the South Korean official.

Last week, the Democratic Party of the Republic of Korea announced plans to introduce a 20% cryptocurrency tax starting in January 2025. This tax was supposed to appear at the beginning of 2022, but the deadline was repeatedly postponed.