South Korea and North Korea have taken sharply contrasting positions on Bitcoin as South Korea’s central bank has reportedly ruled out BTC as part of its foreign exchange reserves.
Why South Korea dismissed BTC
According to the report, the Bank of Korea (BOK) stated that Bitcoin does not meet the International Monetary Fund’s (IMF) criteria for reserve assets, which emphasize liquidity, stability, and credit risk management.
Besides that, the authorities noted the need for a cautious approach, highlighting Bitcoin’s price fluctuations as a significant drawback.
This marks the first time South Korea’s central bank has explicitly addressed Bitcoin’s role in national reserves. Its decision aligns with traditional financial institutions’ cautious stance on cryptocurrencies, even as global discussions on digital assets continue to evolve.
Meanwhile, South Korea’s rejection of Bitcoin as a reserve asset also contrasts with recent moves by the United States.
President Donald Trump’s executive order to establish a strategic Bitcoin reserve has intensified discussions about the role of digital currencies in national financial strategies.
North Korea amasses Bitcoin
While South Korea remains wary of Bitcoin, North Korea has become one of the largest state-backed holders of the asset.
The country’s BTC reserves have surpassed those of Bhutan and El Salvador, two nations that have actively incorporated Bitcoin into their financial strategies.
Data from Bitcoin Treasuries indicates North Korea holds 13,518 BTC, valued at approximately $1.13 billion. This places its holdings above Bhutan’s 10,635 BTC and El Salvador’s 6,118 BTC.
Unlike these nations, which acquired BTC through mining or official purchases, North Korea’s accumulation is tied to the cybercriminal activities of Lazarus Group and is being used to fund the country’s weapons program.
The Lazarus Group, a state-backed hacking organization, has played a key role in this buildup. The syndicate has been linked to several high-profile crypto exchange breaches, including attacks on DMM Bitcoin and Bybit.
These cyber operations have allowed North Korea to amass significant BTC reserves despite international sanctions and economic restrictions.
The post South Korea snubs Bitcoin reserve as North Korea hoards BTC through cyber crime appeared first on CryptoSlate.
