#USNationalDebt According to Yonhap News Agency, the FSC will establish a comprehensive legal framework including anti-money laundering (AML) standards and regulations for the custody of digital assets, aimed at minimizing systemic risks and enhancing transparency. This is a strategic move to help South Korea compete directly with financial hubs like Singapore and Hong Kong in the race to become the top destination for global crypto investors.

South Korea is currently one of the largest retail cryptocurrency markets in the world. According to data from the FSC, the citizens of this country hold approximately 104 trillion won (equivalent to 75.7 billion USD) in digital assets by the end of 2024. The emergence of domestic spot Bitcoin ETFs – if successfully implemented – is expected to significantly boost the market scale as well as the acceptance rate of digital assets in this country.

In addition to the ETF plans, the FSC is also considering issuing a stablecoin pegged to the won by the end of 2025. This move aims to address concerns about capital outflows from the financial system – which the International Monetary Fund (IMF) estimates could reach up to 40.8 billion USD in the early part of 2025 – and strengthen the country's monetary control capabilities.

President Lee sees this as part of a strategy to expand financial sovereignty and create economic development opportunities for the youth – a key pillar of his agenda.