Hey, did you see that South Korea isn’t planning to create a Bitcoin reserve right now? I thought Bitcoin reserves were becoming popular.

I saw that! The South Korean Financial Services Commission, or FSC, said it’s not the right time. They want to focus on connecting crypto to their financial system first.

Why are they hesitating? Didn’t the U.S. just say they’re supporting Bitcoin reserves?

Exactly, but the FSC is being cautious. They said they’re watching what the U.S. does, but for now, they’re more concerned about how volatile the crypto market is.

Volatile? You mean like how Bitcoin’s price goes up and down really fast?

Yes, exactly. Bitcoin’s rapid price changes make it risky for a national reserve. Plus, South Korea’s crypto trading volume is already higher than their stock markets, and they think that’s creating an imbalance.

So they’re worried people are investing more in crypto than in stocks?

Right. The FSC chairman said they want more money to go into traditional markets like the KOSPI and KOSDAQ. They’re not ready to shift focus to Bitcoin yet.

Makes sense, I guess. But why is the U.S. so much more open to Bitcoin reserves? Are they less worried about risks?

It’s not that the U.S. isn’t worried about risks, but President-elect Trump has taken a more crypto-friendly stance. He sees it as a way to innovate and stay competitive globally.

Hmm, but South Korea also has a big crypto scene, right? Wouldn’t a Bitcoin reserve help them lead in crypto adoption?

That’s true, but South Korea is more focused on regulating the market right now. For example, they’re introducing a 20% tax on crypto profits starting in 2025. They want to control the sector before making big moves like a Bitcoin reserve.

A 20% tax? That’s a lot! Who has to pay it?

It applies to profits over 50 million won, which is about $35,668. They raised the threshold after crypto exchanges argued that taxing lower profits would hurt trading volumes.

So they’re trying to balance regulation and keeping the market active?

Exactly. They want to prevent things like unfair trading while still encouraging innovation. It’s a tricky balance to strike.

I see. So for now, South Korea’s just keeping an eye on what the U.S. and other countries do with Bitcoin reserves?

Pretty much. The FSC chairman called it a ‘distant story’ for now. They’re taking things one step at a time to avoid rushing into something risky.

That makes sense. It’s better to be cautious, but I wonder if they’ll change their minds if Bitcoin keeps growing.

Maybe! Crypto is evolving so fast, and governments are still figuring out how to handle it. It’ll be interesting to see what South Korea decides in the future.