South Korean regulators are preparing for a major shift. Spot Bitcoin and other crypto ETFs could be in the market by the second half of 2025.
According to the report, the Financial Services Commission has sent a roadmap to the Presidential Commission on State Issues Plans, which outlines new rules and infrastructure for issuing, trading and assessing these funds.
The move follows Lee Jae -Myung’s promise to bring Crypto into the mainstream financial system.
South Korea is planning a Spot Crypto ETF
Based on the report, FSC wants to establish clear rules for custody, trading platforms and fund valuation before ETFs come into the market. The plan targets approval in late 2025, but authorities have warned that details may still change.
Rather than relying on options of self-capacity, retail investors may access Bitcoin and other crypto assets through traditional securities accounts.
Stablecoins tied to WON
Alongside the ETF, regulators are aiming to deploy domestic stubcoins pegged to South Korea by the second half of 2025. According to the FSC Roadmap, WON-type tokens reduce capital flights and offer homemade digital payment options.
This Stablecoin framework covers issuance rules, reservation requirements and audit criteria to increase trust among users.
Investor Protection and Rules
Investor safety works a lot to your proposal. The government has planned a “one strike” policy for businesses caught up in manipulating the market, requiring executives to return illegal profits. Public companies falling under these rules could face faster repeal. There is also talk of hard penalties for unfair transactions and stronger disclosure rules for crypto companies.
Image: Verdict
Market impact and next steps
South Korea is already one of the world’s top retail crypto markets, with local investors holding approximately $76 billion in digital assets at the end of 2024. When you open an ETF, you can shift some of it to regulated products, and smooth out the wild shaking while bringing in new capital from careful buyers.
The FSC is also considering extending Korean exchange trading hours to 6.5-12 hours a day, which could improve liquidity across all asset classes.
Despite the promise, experts say it’s very important to get the final regulations right. Storage rules must prevent hacking, pricing methods must reflect real-time markets, and audit criteria must verify underlying asset holdings.
Still, this roadmap represents a major shift in South Korea’s attitude towards cryptography. If we move forward as planned, the country will join the US, Canada and parts of Europe to provide spot-based crypto ETFs.
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