The Bank of Korea (BOK) has confirmed it will not create a bitcoin reserve, citing concerns over high volatility and non-compliance with International Monetary Fund (IMF) guidelines.

The central bank said that bitcoin’s volatility could increase transaction costs when cashing out.

It also noted that IMF guidelines require prudent risk management, including liquidity, market, and credit risks, criteria that bitcoin does not meet.

This decision aligns with the cautious stance of financial authorities in Japan, Switzerland, and the European Central Bank. However, it contrasts with the US, where President Donald Trump recently announced a Strategic Bitcoin Reserve through an executive order.

Meanwhile, South Korea is gradually easing restrictions on institutional cryptocurrency trading and developing a new legal framework for stablecoin oversight.