South Korea’s Financial Services Commission (FSC) has formally submitted a detailed roadmap to the Presidential Committee on Policy Planning aimed at approving spot cryptocurrency exchange-traded funds (ETFs) within the country.
This move signals a significant policy shift aligned with President Lee Jae-myung’s campaign promise to lift the existing ban on crypto ETFs, which had been imposed due to concerns over financial stability and the suitability of cryptocurrencies as underlying assets.
The FSC plans to introduce implementation measures for spot crypto ETFs in the second half of 2025. The roadmap includes developing the necessary regulatory framework and infrastructure to list and manage these ETFs while ensuring investor protection and assessing potential risks to the economy. This initiative is part of a broader effort to integrate digital assets into South Korea’s traditional financial markets, including phased approvals for institutional investors to trade cryptocurrencies.
In addition to spot ETFs, the roadmap addresses the legalization of Korean won-based stablecoins, with rules expected to be finalized by late 2025. President Lee has emphasized the importance of establishing a domestic stablecoin market to prevent capital outflows and strengthen the local financial ecosystem. This aligns with his administration’s broader agenda to support financial opportunities for South Korea’s youth and foster innovation in the crypto sector.
The FSC is also conducting a market-wide evaluation of transaction fees at major domestic cryptocurrency exchanges, including Upbit, Bithumb, and Coinone, with a focus on fee structures, transparency, and voluntary fee reductions. Moreover, the commission is considering extending the trading hours of the Korea Exchange from the current 6.5 hours to 12 hours to enhance market accessibility.
South Korea currently hosts one of the world’s largest retail cryptocurrency markets, with holdings valued at approximately 104 trillion won ($75.7 billion) as of late last year. The FSC’s roadmap and regulatory reforms demonstrate the country’s intention to strike a balance between innovation and investor protection while maintaining financial stability amid growing cryptocurrency adoption.
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