South Korea Embraces Spot ETFs: Is Asia Leading the Next Bull Run?
By the second half of 2025, the South Korean Financial Services Commission intends to introduce spot crypto ETFs. After the inauguration of the new government, the initiative represents a reversal of the nation’s prior restrictive crypto policies.
The roadmap describes how spot crypto ETFs will be implemented and was submitted to the Presidential Committee on Policy Planning. According to a preliminary report by Yonhap, the biggest news agency in the nation, it also creates foundations for investor protection, such as criteria for custody, operation, and evaluation.
FSC Proposes Major Crypto Reforms: ETFs, Won-Backed Stablecoins in Focus
According to the FSC‘s report to the State Affairs Planning Committee, the plan would include investor benefits, the impact on the real economy, and dangers associated with the integration of the financial and virtual asset markets. In order to address worries about the outflow of domestic wealth, the FSC’s strategy also calls for removing limitations on stablecoins based on the Korean won.
Crypto ETFs were previously prohibited by the commission because of concerns about financial stability and the belief that they were inappropriate base assets. Although the objectives are ambitious, the regulator stated that the country’s politicians still need to consider the proposals’ specifics.
The specific details of the matters discussed in the National Planning Committee’s briefing are difficult to confirm and have not been finalized,
FSC
South Korea Moves Forward with Crypto ETFs as President Lee Fulfills Campaign Promise
After the successful U.S. debut that routed billions of dollars in institutional capital and sent Bitcoin to all-time highs, President Lee Jae-myung‘s campaign promise to legalize spot crypto ETFs seems to have been fulfilled by those regulatory changes. Since then, the recently elected administration has maintained its pro-crypto posture. He introduced the Digital Asset Basic Act earlier this month, which would enable regional businesses to issue their own stablecoins if it were authorized.
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