South Korea to Approve Spot Bitcoin ETFs and Won-Pegged Stablecoin in Late 2025
South Korean Financial Services Commission (FSC) has outlined a roadmap to launch spot Bitcoin ETFs and other crypto ETFs in the second half of 2025. The plan includes clear Bitcoin ETF rules on custody, trading platforms and fund evaluation. Retail investors will access Bitcoin ETFs via traditional brokerage accounts. Alongside ETFs, regulators aim to introduce a won-pegged stablecoin by late 2025, with strict issuance, reserve and audit standards to curb capital flight. Enhanced investor protections feature a one-strike policy for market manipulation and faster delisting for non-compliant firms. The FSC is also considering extending Korea Exchange trading hours to boost liquidity. Market analysts note that Bitcoin ETFs approval could channel local holdings into regulated products, reduce volatility and attract cautious capital. However, successful rollout hinges on robust custody rules, real-time pricing and transparent audits.
Bullish
Approval of spot Bitcoin ETFs and a won-pegged stablecoin in South Korea is bullish for the crypto market. Past ETF launches in the US and Canada drove institutional inflows, narrowing spreads and improving liquidity. South Korea ranks among the top retail crypto markets with $76 billion in holdings; shifting these into regulated Bitcoin ETFs can stabilize prices and attract new capital. The added stablecoin framework reduces on-ramp friction and keeps funds within local markets. Extended trading hours on the Korea Exchange will further support volume. While successful execution depends on custody safeguards and audit standards, the overall roadmap signals stronger regulatory support, driving both short-term rallies and long-term institutional adoption.