20-6-2025 – South Korea’s premier financial regulator, the Financial Services Commission (FSC), has unveiled ambitious plans to greenlight spot cryptocurrency exchange-traded funds (ETFs), according to reports from local media. This move, detailed in a submission to the Presidential Committee on Policy Planning, aligns with the progressive vision of President Lee Jae Myung, who assumed office championing a bold agenda to bolster the country’s cryptocurrency ecosystem.
The FSC’s blueprint, as reported by Yonhap News Agency, outlines a framework to introduce spot crypto ETFs in the latter half of 2025, marking a pivotal shift from the commission’s earlier stance. Previously, the FSC had prohibited the issuance and trading of such funds, citing concerns over financial stability and the perceived volatility of cryptocurrencies as an asset class. This policy reversal reflects President Lee’s campaign pledge to dismantle the ban, aiming to empower younger generations to build wealth through innovative financial instruments.
Beyond ETFs, the FSC is laying the groundwork to authorise Korean won-based stablecoins by late 2025, a move designed to curb the flight of domestic capital. President Lee, in a recent public address, underscored the necessity of a robust won-based stablecoin market to retain financial resources within South Korea’s borders. This initiative forms a cornerstone of his broader mission to foster economic opportunities for the nation’s youth, a demographic increasingly drawn to digital assets.
South Korea, home to one of the world’s most vibrant retail cryptocurrency markets, saw its citizens hold approximately 104 trillion won ($75.7 billion) in digital assets by the close of last year, per FSC data. This substantial market underscores the urgency of regulatory reforms to harness the sector’s potential while mitigating risks.
In a separate but equally transformative proposal, the FSC is exploring an extension of trading hours for the Korea Exchange, the country’s sole securities exchange operator. The plan would see trading sessions expand from 6.5 hours to 12 hours, a move aimed at enhancing market accessibility and aligning with global financial trends.
On Friday, the FSC tempered expectations, issuing a statement to clarify that the specifics of its roadmap, as reported, remain provisional and subject to refinement. Nonetheless, the commission has already taken steps to integrate cryptocurrencies into the traditional financial system, notably by advancing phased approvals for institutional investors to engage in crypto trading.
This multifaceted approach signals South Korea’s determination to balance innovation with prudence, positioning the nation as a forward-thinking player in the global cryptocurrency arena while safeguarding its financial ecosystem.
