- South Korea’s 2025 crypto ETF roadmap reflects President Lee’s drive to modernize finance and expand access for younger investors.
- The FSC plans to legalize Korean won-based stablecoins to curb capital outflows and build a secure, local digital finance system.
- While proposals are not final, regulatory momentum and public support suggest South Korea will embrace crypto reforms next year.
As Wu Blockchain reports, South Korea is moving closer to approving domestic spot crypto ETFs. On Thursday, the Financial Services Commission (FSC) submitted a roadmap to facilitate this change. It specifies regulatory actions that will be put into effect in the second half of 2025, according to Yonhap News. This is consistent with the crypto-friendly campaign pledges made by President Lee Jae Myung. The FSC also mentioned plans to permit stablecoins based on Korean won in addition to crypto ETFs.
The FSC previously banned spot crypto ETFs, citing financial risks and unsuitability of digital assets. However, political momentum is now reversing that stance. President Lee’s administration aims to expand access to crypto products and improve financial inclusivity, especially for younger citizens. Consequently, the FSC roadmap now reflects this changing direction.
Crypto ETFs Could Arrive by Late 2025
If the policy committee approves the roadmap, crypto ETFs could launch in South Korea by late next year. This would open the door for institutional and retail investors to access regulated crypto markets. Additionally, the move comes as other regions like the U.S. and EU speed up crypto ETF approvals.
Besides crypto ETFs, stablecoin reforms are also in focus. The FSC’s roadmap includes groundwork to legalize Korean won-based stablecoins. These reforms will help prevent capital outflows and foster a localized stablecoin ecosystem. Moreover, this initiative fits within Lee’s goal to create a supportive digital economy for the youth.
The FSC also noted ongoing efforts to liberalize the traditional finance sector. It is reviewing plans to extend Korea Exchange trading hours from 6.5 to 12 hours. The move aims to make Korean financial markets more competitive globally.
Policy Uncertainty Lingers Despite Clear Direction
Despite Thursday’s media buzz, the FSC clarified that none of the proposals are final. However, market sentiment suggests growing support for crypto integration. The FSC is already working on the second phase of its digital asset framework.
This includes strict listing rules, transparent fees, and harsh penalties for manipulation. Hence, regulators aim to strike a balance between innovation and oversight. The government’s new roadmap signals intent to embrace digital assets. If executed, it could reshape the country’s financial future.
