According to Yonhap the move was made in by the Korea Investment Corporation(KIC), a sovereign fund that the government established back in 2005. The fund was created to “enhance” the nation’s long term “purchasing power” through international investment of public funds.
Because Coinbase went public on the Nasdaq Stock exchange in spring 2021, and because mainstream financial advisors have designated it as a company worth watching, the South Korean government currently owns (estimated USD 1.9m) of it.
Yonhap said that the index provider Morgan Stanley Capital International added Coinbase shares to one of its popular tracker-indices in November 2013. This tracker is an investment of public funds by the KCI, and Coinbase shares were then “automatically included in” the portfolio of the sovereign wealth fund.
Accordingly, the South Korean government has acquired 8,700 shares of the American crypto company.
South Korea’s crypto regulation is a delicate issue. The two candidates for the presidency next month have suggested a more business-friendly and crypto-friendly approach to the sector after years of strict regulation.
However, South Korea’s crypto situation is still in flux and surrounded in controversy. The KIC quickly distanced itself from crypto-related issues.
According to a KIC official, cryptoassets were not considered a suitable investment form for a fund. He said that the move was an “indirect and barely substantial investment in a cryptocurrency exchange, but not in cryptocurrencies.”