South Korean authorities have unveiled a roadmap for approving spot crypto ETFs

What’s new? South Korea’s top financial regulator, the Financial Services Commission (FSC), has unveiled a roadmap for approving spot crypto exchange-traded funds (ETFs) from local investment firms. The documents have been sent to the Presidential Committee on Policy Planning, which said it will prepare measures to implement new investment products in the second half of 2025.

Material by Yonhap

What else is known? The FSC roadmap supports new President Lee Jae Myung’s campaign promise to lift the domestic ban on crypto ETFs. The commission had previously disapproved of such products, citing risks to financial stability and the inappropriateness of cryptocurrencies as an underlying asset.

The roadmap also includes plans to lift the ban on Korean won-based stablecoins in the second half of the year, another item on the president’s crypto agenda.

Lee said last month that the country needs to create a market for domestic currency-based stablecoins to prevent domestic capital outflows.

Last week, the Lee-led ruling party submitted its bill to legalize the issuance of stablecoins. This would regulate the minimum share capital of issuers, require them to register with the FSC, and ensure that reserves are held securely to guarantee refunds to customers.

Following news reports, the FSC issued a statement on June 20 that its proposals submitted to the presidential committee may be adjusted.

Meanwhile, the FSC is already making efforts to liberalize the traditional financial market to facilitate its integration with cryptocurrency. For example, the regulator is currently developing a mechanism for the phased admission of institutional investors to crypto trading.

In addition to cryptocurrency, the FSC plans to consider increasing the trading period on Korea Exchange, the country’s only securities exchange operator, from 6,5 to 12 hours.

South Korea is one of the world’s largest retail crypto markets. According to the FSC, locals owned about 104 trillion won ($75,7 billion) worth of cryptocurrency at the end of last year.

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Earlier this week, the US Senate passed the GENIUS stablecoin bill, after which US Treasury Department head Scott Bessent noted that the current President Trump administration’s support for stablecoins would strengthen the dollar’s global dominance.