Seoul, South Korea – In a landmark policy reversal, South Korean financial authorities are preparing to approve the listing of spot Bitcoin and other cryptocurrency exchange-traded funds (ETFs) in the second half of 2025. This move signals a major shift from the government's previously prohibitive stance and positions South Korea to align with other global financial hubs like the United States and Hong Kong.
The significant change in policy is reportedly driven by a new, more crypto-friendly political landscape. Recent reports indicate that the Financial Services Commission (FSC) has submitted a roadmap to the Presidential Committee on Policy Planning to prepare for the launch of local crypto ETFs. This follows election promises from the now-majority Democratic Party, which campaigned on a platform that included lifting the domestic ban on these popular investment products to prevent capital outflow and foster innovation.
This strategic pivot is expected to unlock a substantial wave of capital in one of the world's most active cryptocurrency markets. The introduction of regulated crypto ETFs will provide both institutional and retail investors with a secure and accessible way to gain exposure to digital assets through traditional brokerage accounts. The move is widely seen as a crucial step in legitimizing the domestic crypto market and enhancing investor protection.
Market analysts are closely watching the developments, anticipating that the approval could have a significant impact on the local market, including the dynamic of the famous "Kimchi Premium." By formally integrating crypto products into its regulated financial system, South Korea is not only responding to immense domestic demand but also ensuring it remains a competitive player in the rapidly evolving global digital asset space.
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