Saturday, May 21, 2022

Government Organizations Invests In Crypto-Related Funds, Reports Opposition Lawmaker

The opposition lawmaker in Korea, recently, released data stating that despite being cautious regarding cryptocurrencies, the Korean government was using the crypto-related funds for the past four years to invest $44.4 million into it, indirectly. 

On May 05, a report was published by Rep. Yun Chang-hyun of the People Power Party, notifying that from the year 2017 to March 2021, five public organizations in the country have invested a total of $4.46 million into crypto exchanges like Upbit and Bithumb. The report further stated that during those four years Ministry of SMEs invested the largest amount of $30.4 million into the exchanges.

Apart from this other public organizations like Korea Development bank, the National Pension Service, Korea Post and Industrial Bank of Korea invested in crypto-related funds.

Yun in his report has asked, “If investing in digital coins is a ‘gamble,’ how can public institutions explain their investment in crypto exchanges? He further stated that in order to avoid the contradiction, it is better for the government to present its clear view on cryptocurrency.

A few days ago, the top financial officials of Korea, Eun Seong-soo, the chairman of the Financial Services Commission and Lee Joo-yeol, the Bank of Korea’s governor, claimed that the digital assets do not have any elemental value. 

Eun further called the cryptocurrencies investment, speculative. Additionally, he mentioned that government should drop the idea of protecting crypto investors. 

In the year 2017, the Ministry of SMEs and other startups invested a big amount of $1.71 million in the fund. But, a year later, when the former Minister of Justice Park Sang-ki labeled crypto investment as gambling, the Ministry of SMEs and startups scaled down their investment to $24 million. In the year 2020, the investment slumped down to $5.33 million but in the year 2021, it increased to $21 million.

While talking about crypto-related funding, one of the officials of MSS, said, “Funds of funds provide liquidity into the market and do not intervene in how venture capital firms manage their funds. It is not illegal to invest in cryptocurrencies.”

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