South Korea Plans Spot ETFs in H2 2025, Stablecoin Rules by Year-End
South Korea’s Financial Services Commission (FSC) has submitted a roadmap to approve spot crypto ETFs in the second half of 2025 and introduce a regulatory framework for Korean won–based stablecoins by year-end 2025. The move reverses the FSC’s previous ban, which cited volatility and financial stability risks. Regulators launched a public consultation in July and will consider feedback through August, aiming to amend the Capital Markets Act and related enforcement decrees. Key proposals include stricter custody requirements, enhanced liquidity disclosures, and asset manager qualifications. Major local investors such as Mirae Asset, Samsung Asset, KB Asset, and Hana Financial have expressed readiness to file ETF licences. Approval of spot crypto ETFs—likely covering Bitcoin (BTC) and Ethereum (ETH)—could broaden market access, attract institutional and retail capital, increase liquidity, and reduce volatility in South Korea’s crypto market.
Bullish
Approval of spot crypto ETFs and a regulatory framework for won-based stablecoins is likely to be bullish for the cryptocurrency market. In the short term, the prospect of ETF licences from major asset managers can boost demand for BTC and ETH, triggering price increases. Over the long term, clearer regulation and new investment vehicles will attract institutional and retail capital, enhance liquidity, and reduce volatility by shifting trading from derivatives to ETFs.