South Korea is set to lift its long-standing ban on Bitcoin and other spot cryptocurrency ETFs, marking a pivotal shift in the nation's digital asset policy.
The Financial Services Commission (FSC) has submitted a roadmap to the Presidential Committee on State Planning, outlining plans to approve spot crypto ETFs by the second half of 2025. This initiative aligns with President Lee Jae-myung’s campaign promise to integrate crypto assets into traditional finance.
Key Developments in South Korea’s Crypto ETF Approval
Regulatory Framework and Infrastructure
The FSC’s roadmap mandates new regulations for:
- ETF issuance and custody
- Trading platforms and valuation mechanisms
- Details remain under discussion, with final rules expected by mid-2025.
Government-Backed Stablecoin Ecosystem
Plans include a framework for KRW-pegged stablecoins to:
- Prevent capital outflows
- Foster local capital formation, especially for younger investors
- Full regulatory implementation is slated for late 2025.
Legislative Reforms
- Enhanced disclosure requirements
- Penalties for unfair trading practices
- Strengthened investor protections in crypto markets
South Korea’s Thriving Crypto Market
- $75.7 billion in crypto holdings by Korean investors (2024 data)
- Institutional-grade digital asset trading approvals underway
- Proposed extensions to exchange trading hours (from 6.5 to 12 hours)
👉 Explore global crypto ETF trends
FAQs
Q: When will South Korea approve Bitcoin ETFs?
A: The FSC targets late 2025, pending regulatory finalization.
Q: What’s driving South Korea’s crypto policy changes?
A: President Lee’s agenda to merge crypto with traditional finance and attract youth investment.
Q: How will stablecoins be regulated?
A: A government-backed framework aims to create trustworthy KRW-pegged stablecoins.
👉 Learn about institutional crypto adoption
Market Expansion Strategies
- Broadening access to crypto products in traditional finance
Stricter rules for public companies:
- Zero-tolerance for market manipulation
- Faster delisting of insolvent firms
South Korea’s progressive stance mirrors global crypto adoption trends, positioning it as a leader in Asia’s digital asset economy.
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