South Korea Considers Approval for Spot Crypto ETFs Amid Regulatory Changes

The South Korean authorities have unveiled a roadmap for the approval of spot cryptocurrency ETFs, according to local media reports.

Following recent announcements, the Financial Services Commission (FSC) clarified that details are yet to be fully finalized.

Per the reports, the FSC has submitted a document to the Presidential Policy Planning Committee, with measures for launching crypto ETFs expected to be developed in the latter half of 2025.

This initiative aligns with President Lee Jae-myung’s pre-election commitment to lift the domestic ban on such investment instruments. Previously, the FSC had prohibited the issuance and trading of ETFs linked to digital assets due to concerns about financial stability risks.

The roadmap also includes plans to lift the prohibition on stablecoins pegged to the South Korean won, anticipated to take place in the latter half of 2025. The President believes that this action will help mitigate capital outflow from the country.

South Korea is one of the largest retail cryptocurrency markets globally. According to the FSC, by the end of 2024, citizens are expected to hold digital assets valued at 104 trillion won (approximately $75.7 billion).

Additionally, in March, the financial intelligence unit of the FSC reported the blocking of 17 foreign cryptocurrency exchanges on Google Play.

In April, authorities examined allowing foreign access to crypto exchanges while enhancing anti-money laundering controls.

Later, the Bank of Korea (BoK) expressed its intention to «actively participate» in the development of legislation governing stablecoins.