South Korean Financial Authorities Are Considering the Legal Path for Spot Crypto ETFs, a Move That Could Profoundly Impact the $75.7 Billion Market.
According to local media information, South Korean financial managers are moving closer to legalizing spot crypto Exchange Traded Funds (ETFs). Yonhap News reports that the South Korean Financial Services Commission (FSC) has submitted a detailed roadmap to the Presidential Policy Planning Committee to deploy these products in the second half of this year.
This move is seen as an important step, clearly reflecting the campaign commitment of President-elect Lee Jae-myung, who has always supported opening the domestic digital asset market.
Previously, the FSC maintained a cautious stance and banned spot crypto ETF products due to concerns about financial stability risks. This change in position indicates a notable policy turning point, positioning South Korea similarly to major markets like the US, where Bitcoin spot ETFs have attracted billions of dollars in investment capital since their launch.
However, in a recent announcement, the FSC noted that the report about submitting this plan has not been officially confirmed, demonstrating the necessary caution before further steps.
In addition to considering spot crypto ETFs, the new plan also proposes establishing a clear legal framework to legalize stablecoins pegged to the South Korean won in the second half of 2025.
According to President-elect Lee, developing domestic stablecoins is an important part of the strategy to retain economic value domestically and prevent investment capital from flowing abroad. Both spot crypto ETFs and KRW stablecoins are seen as important tools helping young generations in South Korea build a solid financial foundation.
Although no final decision has been made, the general trend is clearly that South Korea is gradually removing barriers between traditional finance and digital assets. The FSC is also promoting plans to open the digital asset market to institutional investors and considering other large-scale reforms such as extending stock trading hours from 6.5 hours to 12 hours daily on the Korea Exchange (KRX).
With the domestic retail cryptocurrency market estimated at 104 trillion won (approximately $75.7 billion) by the end of last year, policy moves from Seoul are currently attracting special attention from the global financial community.
