South Korea Considers Approval of Spot Crypto ETFs

South Korean authorities have unveiled a roadmap for the approval of spot cryptocurrency ETFs, according to local media.

Following these reports, the Financial Services Commission (FSC) clarified that details are yet to be finalized.

According to media sources, the FSC has sent a document to the Presidential Policy Planning Committee. Measures for launching crypto ETFs are expected to be prepared in the second half of 2025.

The initiative supports President Lee Jae-myung’s campaign promise to lift the domestic ban on such instruments. Previously, the FSC had prohibited the issuance and trading of ETFs based on digital assets due to risks to financial stability.

The roadmap also includes lifting the ban on stablecoins pegged to the Korean won, expected to occur in the latter half of 2025. The president believes this move will prevent capital outflow from the country.

South Korea is one of the largest retail crypto markets in the world. According to the FSC, by the end of 2024, citizens of the country held digital assets worth 104 trillion won ($75.7 billion).

Back in March, the Financial Intelligence Unit of South Korea’s Financial Services Commission reported the blocking of 17 foreign crypto exchanges on Google Play.

In April, authorities explored opening access to crypto exchanges for foreigners while tightening anti-money laundering controls.

Later, the BoK announced its intention to “actively participate” in creating legislation regulating stablecoins.