SOUTH KOREA FILES ROADMAP TO LAUNCH SPOT CRYPTO ETFs IN 2025

- South Korea’s Financial Services Commission (FSC) officially submitted a roadmap to legalize spot crypto ETFs. The plan targets implementation by late 2025.

- The move aligns with President Lee Jae Myung’s crypto-focused agenda. It reverses earlier restrictions that banned crypto ETFs over concerns about financial stability.

- The FSC delivered the roadmap to the Presidential Committee on Policy Planning. It outlines steps to greenlight both local crypto ETFs and Korean won-based stablecoins.

- President Lee’s broader campaign seeks to help young South Koreans build wealth through access to digital assets. Lifting the crypto ETF ban was one of his central promises.

- The proposal also includes approval mechanisms for KRW stablecoins, set to roll out in the second half of 2025. Lee argues a domestic stablecoin market is key to stopping capital from leaking abroad.

- Per reports, the FSC is already liberalizing access to crypto for institutions, processing phased approvals for regulated crypto trading. It’s also probing high fees on local exchanges—another Lee campaign issue.

- Meanwhile, the Bank of Korea Governor Rhee Chang-yong warns that KRW stablecoins could lead to more demand for dollar-based tokens like USDT, complicating foreign exchange control.