Joining the Bitcoin ETF frenzy, South Korea is set to become a pioneering force in the domain, with the country’s Financial Services Commission (FSC) submitting a roadmap for approving local spot Bitcoin exchange-traded funds (ETFs) by the end of 2025.
According to a report by local news outlet Yonhap, this bold move aligns with President Lee Jae Myung’s election promise to lift the domestic ban on crypto ETFs. This initiative signals a strategic pivot to integrate the country’s substantial crypto holdings into its financial ecosystem.
The roadmap, submitted to the Presidential Committee on Policy Planning, outlines plans to establish robust regulatory frameworks, including enhanced anti-money laundering (AML) and custody standards, to mitigate systemic risks. This comes as the country addresses gaps in its financial ecosystem while aiming to position itself as a regulated crypto hub ahead of competitors like Singapore and Hong Kong.
South Korea is home to one of the world’s largest retail cryptocurrency markets, with its citizens holding approximately 104 trillion won ($75.7 billion) in crypto assets by the end of 2024, per FSC data. If successfully launched, spot Bitcoin ETFs could notably upscale these numbers and put them among leading countries in cryptocurrency adoption.
The initiative also includes a parallel plan to introduce won-based stablecoins by late 2025, addressing a 2024 IMF study’s concern over capital outflows—estimated at $40.8 billion in early 2025 alone. President Lee views this as a means to bolster financial sovereignty and empower the youth economically, a cornerstone of his administration’s agenda.
Also read: Arizona Senate Revives Bitcoin Reserve Bill After Rejection
