South Korea is gearing up to lift its long-standing ban on Bitcoin and other spot crypto ETFs.
Local media Yonhap News Agency confirmed that South Korea’s Financial Services Commission (FSC) has submitted a roadmap to the Presidential Committee on State Affairs Planning, outlining its intention to approve spot crypto ETFs in the second half of 2025.
The roadmap calls for new regulations and infrastructure to support the issuance, custody, trading, and evaluation. The FSC noted that while preparations are ongoing, the details remain subject to change and have not been finalized.
President Lee’s Crypto Agenda Gains Momentum
Notably, the proposed ETF approval aligns with President Lee Jae-myung’s campaign promises to integrate crypto assets into the traditional financial sector. He had pledged to lift restrictions on spot Bitcoin and crypto ETFs. In parallel, he said he would build a domestic stablecoin market to support local capital formation, especially for the youth.
As part of this initiative, the government is also pursuing a legislative overhaul to improve disclosure, enforce penalties against unfair trading, and boost investor protection in the crypto asset space.
These moves align with developments in the United States, where the new Trump administration is pursuing several initiatives favoring crypto assets
Won-Based Stablecoins Coming in Late 2025
Alongside ETFs, the FSC roadmap includes plans to develop a framework for Korean won-based stablecoins. This initiative aims to prevent the outflow of domestic capital by creating a trusted, government-backed stablecoin ecosystem. Likewise, the full regulatory implementation is for the latter half of 2025.
Korea’s Crypto Market Expands with Regulations
South Korea remains one of the world’s largest retail crypto markets. As of the end of 2024, Korean investors held roughly $75.7 billion in crypto assets.
The FSC is currently processing institutional-level approvals for digital asset trading and exploring ways to expand traditional financial market access to crypto products.
In addition to digital asset regulation, the FSC is considering extending Korea Exchange trading hours from 6.5 to 12 hours.
It is also rolling out stricter rules for public companies, including a “one-strike” policy for executives involved in market manipulation, mandatory return of insider profits, and faster delisting for insolvent firms.
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