South Korea is planning to approve local spot Bitcoin ETFs by the end of 2025, according to a new roadmap submitted by the Financial Services Commission (FSC), based on an initial report from Yonhap. This is part of a bigger effort to update the country’s crypto rules and match global standards.
The FSC recently shared this plan with the Presidential Committee on Policy Planning. It explains how spot Bitcoin ETFs and stablecoins tied to the Korean won will be allowed. This marks a big change because South Korea banned crypto ETFs back in 2017 over safety worries. However, with new leaders, the ban is now being lifted.
This change fulfills a key campaign promise by President Lee Jae-myung, who vowed to lift the ban on crypto ETFs if elected. Consequently, this move aims to give more chances to young people and attract foreign investors to South Korea’s growing crypto scene. According to the FSC, By the end of 2024, Korean citizens held over 104 trillion won (around $75.7 billion) in digital assets by the end of 2024.
To make this work, the FSC is setting up rules for how ETFs should be managed. This includes how funds are handled, how prices are set, and how clear the process will be. Additionally, crypto exchanges in South Korea must lower fees and be open about their costs. These steps will make investing safer and easier for everyone.
The plan also includes strong actions against fraud. The FSC will ban and fine anyone who breaks the rules. Moreover, a watchdog system will keep an eye on the market to protect investors. The FSC told Yonhap News that they are looking closely at risks between crypto and regular finance, the economy, and benefits for investors.
Meanwhile, South Korea is also ready to approve won-backed stablecoins by late 2025. The FSC hopes this can reduce capital outflows, which the IMF said was $40.8 billion earlier this year. The stablecoins will help make the market stronger and more modern.
If successful, the country could bring in billions of new dollars and help South Korea become a top place for crypto. With lots of people holding about $75.7 billion in digital coins, the country is building rules to create a safe and busy crypto market.
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