South Korea Moves Toward Spot Crypto ETF Approval in 2025

South Korea’s financial regulator has submitted a roadmap outlining plans to approve spot crypto ETFs and a Korean won-based stablecoin market, signaling a major shift in the nation’s digital asset policies by late 2025.

FSC Files Roadmap for Spot Crypto ETFs, Eyes Domestic Stablecoin Market

South Korea’s Financial Services Commission (FSC) has taken a key step toward approving local spot crypto exchange-traded funds (ETFs), submitting an official roadmap to the Presidential Committee on Policy Planning. The plan aims to roll out concrete implementation measures by the second half of 2025, according to reports by Yonhap News Agency.

This move supports President Lee Jae Myung’s campaign promise to lift the country’s longstanding ban on crypto ETFs, previously justified by concerns over market instability and doubts about cryptocurrencies as suitable base assets. If approved, the ETFs would give local investors access to regulated spot crypto products for the first time.

In addition to ETFs, the FSC’s roadmap includes laying the groundwork for a Korean won-backed stablecoin market, also targeted for release in late 2025. President Lee has emphasized that developing a domestic stablecoin ecosystem could curb capital outflows and offer South Korean retail investors safer crypto options.

Despite the reported roadmap, the FSC clarified that its filing details remain tentative and unconfirmed. Still, this development highlights the government’s shift toward broader crypto market liberalization, as institutional trading frameworks are already under phased approval.

South Korea remains a major hub for retail crypto activity, with domestic holdings totaling 104 trillion won ($75 billion) as of late 2024, making regulatory clarity in this space critical for both local and global market participants.