South Korea plans to introduce digital asset spot exchange-traded funds (ETFs) within the year, alongside accelerated efforts to establish a comprehensive legal framework for stablecoins and cross-border crypto transactions.
The measures were outlined in the government’s 2026 Economic Growth Strategy, released by the Financial Services Commission (FSC), signalling a more formal integration of digital assets into the country’s financial system.
Until now, cryptocurrencies such as Bitcoin have not been recognized as eligible underlying assets for ETFs in South Korea, effectively blocking spot ETF products. The policy shift aligns the domestic market with jurisdictions like the United States and Hong Kong, where Bitcoin spot ETFs are already actively traded.
South Korea said in its 2026 Economic Growth Strategy that it plans to allow spot digital asset ETFs, including spot Bitcoin ETFs, this year, while the Financial Services Commission (FSC) accelerates phase-two digital asset legislation. The government cited active spot Bitcoin…
— Wu Blockchain (@WuBlockchain) January 9, 2026
Stablecoin rules and cross-border oversight
As part of the second phase of digital asset legislation, regulators will introduce a structured framework governing stablecoin issuance and operations of stablecoins. Key provisions include licensing requirements for issuers, minimum capital thresholds, full reserve backing exceeding 100% of issued tokens, and guaranteed redemption rights for holders.
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Authorities also plan to extend regulatory oversight to cross-border stablecoin transfers and transactions, addressing growing concerns around capital flows and financial stability in an increasingly globalized crypto market. The FSC will work alongside the Ministry of Economy and Finance to finalize enforcement standards.
Tokenized deposits and blockchain payments
Beyond stablecoins, the government is pushing forward with the adoption of tokenized deposits, aiming to digitize up to one-quarter of national treasury funds by 2030. Following pilot program evaluations, officials plan to revise existing laws—including the Bank of Korea Act and the National Treasury Act—to provide legal grounding for blockchain-based payment systems.
Electronic wallets capable of handling tokenized deposits will also be rolled out, initially supporting government expenses such as operational and administrative payments.\
Meanwhile, South Korea’s most prominent financial holding companies are accelerating their push into the stablecoin market. They are forming strategic partnerships with leading technology firms to establish a foothold in the rapidly expanding digital payments sector.
A Digital Asset Basic Act is being prepared
The regulatory push is increasingly being consolidated around a proposed Digital Asset Basic Act. The legislation is intended to establish a framework for digital assets beyond the country’s existing Virtual Asset User Protection Act, which took effect in July 2024.
The proposed law would address areas including digital-asset issuance, stablecoins, investor protection and market conduct. Recent reports indicate that lawmakers and the government are targeting the second half of 2026 for progress on the legislation.
This would give South Korea a more comprehensive framework instead of regulating different parts of the crypto market through separate measures.
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