South Korea’s National Pension Service (NPS) has taken
a noteworthy leap into the world of cryptocurrencies, as per a recent regulatory
filing with the US Securities and Exchange Commission (SEC). The NPS, which is the world’s third-largest
pension fund, ventured into the crypto market in the third
quarter of 2023 with an investment of $20 million in Coinbase Global’s shares, Bitcoin.com reported.
The NPS, established in 1988, operates as South Korea‘s major public pension fund. It is overseen by the National Pension Service
Investment Management and boasts a mandate that encompasses both Korean
citizens and foreign residents in Korea.
According to the SEC’s disclosure, the NPS acquired 282,673 shares of Coinbase Global, valued at $20 million. This move has proved successful, with an appreciation of 40% in the value of the investment since it was purchased at an average price of $70.5 per share.
Presently, Coinbase’s shares are trading at around $98
each, indicating a notable increase of 26% within the last month. NPS’ strategic
investment aligns with a broader global trend, where entities are opting to buy the stocks of publicly traded companies within the crypto space.
The NPS’s latest step happens when South Korea is
stepping up its effort to fight crypto-related crimes. In July, the country
formed a special investigations unit aimed at countering the surge of illegal
activities within the sector. The unit prioritizes safeguarding
investors’ interests amid the absence of a comprehensive regulatory framework.
The absence of robust legal protection and
inadequate regulations in the crypto sphere has led to vulnerabilities for
investors. The investigations unit stepped in as an interim measure until formal
laws are enacted, focusing on cryptocurrencies