South Korea’s Ruling Party Considers Green Light for Crypto ETFs by 2025 H2

South Korea’s ruling People Power Party (PPP) is reportedly considering the approval of cryptocurrency-based exchange-traded funds (ETFs).

According to the Korea Times, Kim Sang-hoon, the PPP’s top policymaker, told reporters on March 7 that the government and the party would assess global trends and regulatory infrastructure before making a decision.

Speaking at a press briefing after a meeting at the National Assembly in Seoul, which included government officials and local cryptocurrency exchange leaders, Kim noted the move is in response to requests from various quarters to establish a strong local market for cryptocurrencies.

PPP floor leader Kweon Seong-dong reportedly echoed this sentiment during the meeting. According to local news outlet, Korea JoongAng Daily, Kweon stated that “An appropriate regulatory adjustment is needed—neither excessively stringent nor too lenient.”,.

Korea Times reported that the PPP and the government are targeting the second half of 2025 to establish a framework that will allow 2,500 listed firms and 1,000 professional investment corporations, excluding financial institutions, to trade crypto assets.

A Bloomberg report highlighted that South Korean crypto exchanges had a daily average trading volume of $9.4 billion, surpassing the $7 billion traded on the Korea Composite Stock Price Index (KOSPI). This indicates that cryptocurrency trading is more active than traditional stock trading in South Korea.

Despite this surge, the Financial Services Commission (FSC) has maintained a cautious stance on crypto ETFs, even though discussions on Bitcoin ETF approvals have been ongoing since late last year.

At a recent press conference, Korea Financial Investment Association Chairman Seo Yoo-seok urged policymakers to approve crypto ETFs, arguing that South Korea must keep pace with global markets.

Similarly, Korea Exchange (KRX) Chairman Jung Eun-bo warned that delaying crypto ETF trading could put the country at a disadvantage. He emphasized that cryptocurrency could generate new financial value and called for swift regulatory action.

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