Jefferies Drops Bitcoin For Gold As Google Blocks Crypto Apps In South Korea

TLDR

Table of Contents

Jefferies reallocates 10% Bitcoin share to gold due to quantum computing concerns.
Google Play to block overseas crypto apps in South Korea starting Jan 28.
Goldman Sachs studies tokenization and prediction markets, pending regulations.
Iran’s crypto activity nears $8B as Bitcoin withdrawals spike during protests.

Amid rising concerns about quantum computing’s impact on digital assets, Jefferies’ top strategist has pulled Bitcoin from his model portfolio, redirecting funds into gold. At the same time, Google Play is tightening crypto rules in South Korea, banning unregistered overseas exchanges. As traditional finance explores blockchain innovation and Iran’s crypto usage rises during unrest, the global crypto landscape is facing major shifts in policy, security, and institutional trust.

Bitcoin Removed from Model Portfolio

Christopher Wood, global head of equity strategy at Jefferies, removed Bitcoin from his “GREED & fear” model portfolio. He shifted the full 10% allocation into physical gold and gold-mining equities.

Wood cited rising concerns over the potential of quantum computing to compromise Bitcoin’s cryptographic security. He referred to a 2025 study by Chaincode Labs that estimated between 20% to 50% of Bitcoin in circulation could be at risk due to quantum-enabled key extraction.

This marks a turnaround in Wood’s position on Bitcoin. He previously supported the asset as a digital alternative to gold, especially during the stimulus period in the COVID-19 era when custody infrastructure improved.

Growing Attention to Quantum Threats

Experts have warned that reused Bitcoin addresses and public key exposure increase vulnerability in a post-quantum world. Several crypto projects and governments are already taking steps to prepare.

El Salvador, a country with major Bitcoin holdings, has reportedly begun restructuring its Bitcoin reserves in anticipation of quantum threats. Startups focused on quantum-resistant blockchain technology have also seen growing investor interest.

Wood’s move suggests a shift in institutional outlook, placing more trust in traditional safe havens like gold amid rising technological uncertainty.

Google Play to Restrict Crypto Apps in South Korea

Google Play will block overseas cryptocurrency exchanges and wallets from its South Korean store starting January 28, 2026. All platforms must now register as Virtual Asset Service Providers (VASPs) with the Korea Financial Intelligence Unit.

This policy will restrict global apps like Binance, OKX, and Bybit from providing updates or being downloaded through Android devices in Korea. The ban will not affect platforms that are already registered locally, such as Upbit and Bithumb.

Foreign exchanges face obstacles to registration due to Korea’s strict local cybersecurity and anti-money laundering rules. These hurdles make compliance difficult for international firms.

While South Korean users can still access these platforms via web browsers, there is concern that this could lead to more use of VPNs and APK downloads. Authorities worry this may expose users to more security risks.

Goldman Sachs Evaluates Blockchain Use Cases

Goldman Sachs is actively exploring blockchain-based innovations like tokenization, stablecoins, and prediction markets. CEO David Solomon confirmed this during the firm’s recent earnings call.

He noted that the bank is waiting for more regulatory clarity, especially regarding U.S. market structure laws. Goldman has already formed teams focused on these areas and is working closely with legal advisors.

Solomon also met with two large prediction market platforms to better understand how such systems work. He said many of these products resemble derivatives and are currently under review by regulators like the CFTC.

Goldman is one of several large financial institutions participating in discussions around a bank-backed digital currency initiative. This initiative is intended to explore stablecoin-like payment solutions within a regulated framework.

Iran’s Crypto Activity Grows Amid Protests

Blockchain analytics firm Chainalysis reported that Iran’s crypto ecosystem reached $7.8 billion in 2025. The rise in activity closely tracked political events, protests, and cyber incidents throughout the year.

During recent protests, Bitcoin withdrawals from Iranian exchanges to personal wallets increased. Chainalysis said this might show a flight to safety, as people sought to protect their assets from political and economic turmoil.

Wallets linked to Iran’s Islamic Revolutionary Guard Corps reportedly received nearly half of the total crypto value entering the country in the fourth quarter of 2025.

The report indicates that crypto in Iran serves both as a financial tool for civilians and a funding channel for sanctioned groups.

Lawmakers Raise Concerns Over SEC’s Pause on Crypto Cases

Three House Democrats have questioned the SEC over its decision to pause or dismiss several high-profile crypto enforcement actions. One of these cases involves Tron founder Justin Sun.

In a letter to SEC Chair Paul Atkins, the lawmakers warned that these decisions may create the appearance of political influence, especially after a rise in crypto-linked campaign donations.

They asked for clarification on whether the agency is treating enforcement differently for individuals with political ties. A spokesperson for Justin Sun denied any wrongdoing and stated that Sun continues to cooperate with regulators.