South Korea has confirmed that Bitcoin will not be included in its foreign exchange reserves, citing concerns over volatility and regulatory standards. The Bank of Korea responded to a parliamentary inquiry by stating that Bitcoin does not meet the International Monetary Fund's criteria for reserve assets, which require liquidity, stability, and an investment-grade credit rating.

Despite global discussions on national Bitcoin reserves, the central bank emphasised a cautious approach. It highlighted that major institutions, including the European Central Bank and the Swiss National Bank, share similar reservations. Officials also warned that cashing out Bitcoin could become costly if the market experiences instability.

Some South Korean lawmakers have urged the central bank to explore Bitcoin's role in the financial system, but no formal discussions have taken place. Meanwhile, the country continues to ease crypto regulations, working on institutional trading reforms and considering exchange-traded funds to expand market opportunities.