South Korea is reportedly getting ready to open its monetary markets to identify bitcoin exchange-traded funds (ETFs) this 12 months, marking a shift within the nation’s long-standing method to digital property as regulators speed up work on a complete new crypto regulation.
The plan was outlined within the authorities’s newly launched 2026 Financial Development Technique, with the Monetary Providers Fee (FSC) taking the lead on implementation.
If accepted, spot bitcoin ETFs would change into out there to home buyers for the primary time, putting South Korea alongside markets resembling america and Hong Kong, the place related merchandise have already attracted billions of {dollars} in inflows.
Till now, Korea’s capital markets guidelines haven’t acknowledged cryptocurrencies like bitcoin or bitcoin ETFs as eligible underlying property for ETFs, successfully blocking their launch. That stance is now altering as policymakers look to convey extra crypto exercise into regulated channels and scale back the stream of capital to offshore platforms.
The bitcoin ETF push is shifting in parallel with a broader overhaul of digital asset regulation. The FSC is fast-tracking what it calls “Part Two” digital asset laws, a invoice anticipated to focus closely on stablecoins.
In line with authorities plans, the regulation will introduce a licensing system for stablecoin issuers, minimal capital necessities, and strict reserve guidelines requiring at the least 100% backing of issued tokens. Issuers would even be required to ensure consumer redemption rights.
Regulators say the framework is designed to stop failures just like the 2022 Terra-Luna collapse, which worn out roughly $40 billion and had deep ties to South Korea.
Alongside home guidelines, authorities are drafting requirements for cross-border stablecoin transfers and transactions, reflecting rising use of digital tokens in commerce and remittances. The trouble is being coordinated between the FSC and the Ministry of Economic system and Finance.
World bitcoin ETF implementation
Officers level to international precedents as a key affect. Spot bitcoin ETFs within the U.S. and Hong Kong have seen robust demand, with main asset managers now treating the merchandise as mainstream funding instruments.
Korea’s Monetary Intelligence Unit estimates that greater than 10 million individuals are eligible to commerce digital property domestically, underscoring the dimensions of potential demand.
Past non-public markets, blockchain can be shifting into public finance. The federal government plans to digitize components of the nationwide treasury utilizing so-called “deposit tokens,” a type of government-linked digital forex distinct from stablecoins, in response to studies.
By 2030, as much as 25% of treasury operations could possibly be carried out by way of blockchain-based funds.
Pilot packages are already underway, and lawmakers are reviewing amendments to the Financial institution of Korea Act and the Nationwide Treasury Act to ascertain a authorized basis for these techniques.
Officers say the objective is quicker settlement, decrease administrative prices, and improved transparency.
