South Korea to Launch Bitcoin ETFs by 2025: A Crypto Market Shift
South Korea is poised for a significant crypto market transformation with plans to introduce spot Bitcoin and other cryptocurrency ETFs by the second half of 2025. This initiative, driven by President Lee Jae-myung’s vision to integrate crypto into the mainstream financial system, is outlined in a roadmap submitted by the Financial Services Commission (FSC) to the Presidential Committee on State Affairs Planning. The roadmap details the establishment of comprehensive rules and infrastructure for the issuance, trading, and valuation of these ETFs. Before approval, the FSC aims to establish clear regulations on custody, trading platforms, and fund evaluation, ensuring investor protection. Retail investors will likely access these crypto assets through conventional brokerage accounts. Simultaneously, South Korea plans to introduce a domestic stablecoin pegged to the Korean won by late 2025, aiming to reduce capital flight and offer a local digital payment solution. This stablecoin framework will incorporate robust issuance rules, reserve requirements, and auditing standards to maintain user trust. The government’s commitment to investor safety includes a “one-strike” policy for market manipulation, with penalties including executive restitution of illicit gains and faster delisting for public firms. Stricter penalties for unfair trading and enhanced disclosure rules for crypto firms are also planned. South Korea’s existing robust retail crypto market, holding approximately $76 billion in digital assets at the end of 2024, is expected to see a shift towards regulated products with the introduction of ETFs, potentially attracting new, risk-averse investors and smoothing out market volatility. The FSC is also considering extending the Korea Exchange trading hours, potentially boosting liquidity. Experts emphasize the importance of meticulous regulation development, including robust custody rules, accurate real-time pricing, and reliable asset verification methods. The successful implementation of this plan would place South Korea alongside the US, Canada, and parts of Europe in offering spot-based crypto ETFs, potentially influencing other Asian markets.
(Source: https://bitcoinist.com/south-koreas-crypto-push-bitcoin-etfs-headed-for-approval-in-2025/)
