South Korean Pension Fund Clarifies Stance on crypto Investments
The National Pension Service (NPS) of South Korea recently clarified its stance on crypto Investments, stating that it currently has no plans to invest in cryptoassets despite its recent purchases of crypto-related shares. The NPS explained that its acquisition of Coinbase and MicroStrategy stocks was done automatically through index management tools that track benchmark indices and consignment management providers.
Not Investing in Cryptoassets
Last year, the NPS' fund managers bought $20 million worth of Coinbase shares, followed by a $33.75 million investment in MicroStrategy shares this year. However, the NPS emphasized that cryptoassets like Bitcoin are not investment targets for the pension fund.
“We have no intention of investing in cryptoassets. Cryptoassets such as Bitcoin (BTC) are not investment targets for us.” - South Korean National Pension Service
In response to a lawmaker's query about its indirect crypto Investments, the NPS clarified that it had never purchased shares of companies like Coinbase or MicroStrategy with the intention of investing in cryptoassets.
Potential Restrictions and Caution
While the NPS currently does not restrict Investments in crypto-related companies, it stated that the Fund Management Committee could rule on restricting such Investments if necessary. This suggests that the committee may consider future Investments in crypto-related firms.
“We will actively support the Fund Management Committee if it decides to restrict investment in [crypto-related] companies.” - NPS
Lawmaker Baek urged caution, advising the NPS to review investment Policies related to cryptoassets and manage potential risks arising from the volatile crypto Market.
South Korean businesses, eager for more freedom in crypto Investments, are pushing for the government to lift restrictions that currently prevent direct Investments in cryptoassets. With firms in other countries like the US and Japan investing in cryptocurrencies, there is growing pressure on South Korea to reconsider its stance on crypto Investments.
“My company – and any other for that matter – should be free to invest our money in whatever assets we choose to. If this is the case in the United States, why aren’t our political leaders taking note?”
As the debate continues on the role of crypto Investments in institutional portfolios, the NPS's clarification sheds light on its current position on cryptoassets and the potential for future investment decisions in this rapidly evolving Market.
