In 2025, South Korea's cryptocurrency market is focused on one thing from retail investors to the political arena: when will a legal cryptocurrency ETF be officially launched? This article will delve into the dynamics of the South Korean market, political trends, and regulatory status, revealing the latest developments in this financial revolution.
South Korea has risen to become the second-largest cryptocurrency market in the world.
According to data, the cryptocurrency trading volume in Korean won reached an astonishing $663 billion in 2025, second only to the US market's $832 billion. This figure not only highlights the scale of the South Korean market but is almost on par with the global US dollar cryptocurrency trading volume, reflecting South Korea's key position in the global digital asset ecosystem.
One-third of adults hold cryptocurrencies, surpassing the participation rate in the United States and the stock market.
The cryptocurrency usage rate in South Korea has completely overtaken traditional finance. Data shows that over 16 million South Korean adults own crypto assets, accounting for about 32% of the adult population, which is twice that of the United States. More notably, the number of people holding cryptocurrencies in South Korea has surpassed the number of stockholders, demonstrating the strong appeal of crypto assets among the public.
This enthusiasm is also reflected in trading volumes: local cryptocurrency exchanges in South Korea, such as Upbit, have trading volumes that are on par with major stock exchanges, and in some cases, even surpass them.
(Trading cryptocurrency is more popular than trading stocks, with South Korea's cryptocurrency trading volume approaching that of the stock trading market)
Politicians are also trying to ride the 'crypto wave': bipartisan support for ETF legalization.
The presidential election in June 2025 made cryptocurrency a national political focus. Both presidential candidates publicly supported the legalization of spot cryptocurrency ETFs, demonstrating a rare bipartisan consensus. The ultimately victorious president, Lee Jae-myung, further promised to accelerate the legalization process of ETFs and resolve the long-standing issues of policy ambiguity and regulatory delays.
(A presidential candidate in South Korea calls out: if elected, will promote the legalization of Bitcoin ETFs and create a youth-friendly investment environment)
Retail investors lead the way, and institutions are not far behind: dual demand boosts expectations for ETFs.
Although the South Korean market has been dominated by retail investors in the past, institutional investors have begun to enter the field in recent years. Especially with expectations of policy loosening, interest in crypto ETFs has surged among large institutions such as corporations and pension funds. It is worth noting that the elderly population's acceptance of ETFs is much higher than that of directly purchasing crypto assets, as they prefer regulated and less volatile investment tools.
Current regulations are stalled, and ETFs are still in the 'waiting zone'.
South Korea's current (Capital Markets Act) does not recognize virtual assets as eligible for ETF issuance, thus preventing the legal launch of crypto ETFs. This has become a major barrier to market development. However, since 2025, regulatory agencies and the National Assembly have begun promoting new legal amendments and regulatory reviews, aiming to complete the institutional framework by the end of the year to greenlight the ETFs.
Crypto ETFs are a key step towards the modernization of South Korean finance.
South Korea currently accounts for about 35% of global cryptocurrency trading volume, indicating its significant market influence.
It is estimated that by the end of 2025, the number of cryptocurrency users in South Korea will approach 20 million.
Crypto ETFs are seen as a necessary tool to promote market stability, attract institutional funds, and achieve asset diversification.
Financial regulatory agencies and exchanges are also gradually expressing support, paving the way for market opening.
Overview of South Korea's 2025 Cryptocurrency Market
Indicator Item Data or Status Total Cryptocurrency Trading Volume in Korean Won for 2025: $663 billion Global Ranking (based on fiat currency trading volume): 2nd (only after the US dollar) Proportion of Adult Population Holding Cryptocurrency: About 32% (over 16 million people) Political Support for Crypto ETFs: Strong bipartisan support Legal Status of Crypto ETFs: Not yet legal, regulatory amendments ongoing Expected Launch Time for ETFs: By the end of 2025 (estimated)
This article states that in 2025, the Korean won trading volume in cryptocurrency is second only to the US dollar! One-third of adults in South Korea hold cryptocurrencies, and the legalization of ETFs will further boost growth. Originally appeared in Chain News ABMedia.
