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South Korea’s top financial regulator has unveiled a policy roadmap to introduce spot cryptocurrency ETFs by late 2025, signaling a sharp pivot from the country's historically cautious stance on digital assets.
In a briefing submitted Thursday to the Presidential Committee on Policy Planning, the Financial Services Commission (FSC) detailed its intention to legalize and regulate spot crypto ETFs—previously banned on concerns over market volatility and asset suitability. The move aligns with the broader pro-crypto shift under President Lee Jae-myung, whose administration has prioritized integrating digital assets into the mainstream financial system.
According to state media reports, the FSC’s roadmap includes robust investor protection measures, ranging from custodial oversight to ETF valuation protocols. It also proposes lifting the longstanding ban on Korean won-denominated stablecoins—a policy blamed for capital flight and limiting local fintech innovation.
“The risks tied to the intersection of financial and virtual asset markets, as well as the macroeconomic implications and investor advantages, are all being assessed,” the FSC stated in its filing. However, the commission acknowledged that many of the outlined policies remain in the early stages and are subject to parliamentary review.
