South Korean regulators are gearing up for a big shift: spot Bitcoin and other crypto ETFs could hit the market by the second half of 2025.
This move follows President Lee Jae‑myung’s promise to bring crypto into the mainstream financial system.
Retail investors will likely gain access to Bitcoin and other crypto assets through traditional brokerage accounts, rather than relying on self‑custody options.
This stablecoin framework will cover issuance rules, reserve requirements and auditing standards to keep trust high among users.
Investor safety features heavily in the proposals. The government plans a “one‑strike” policy for companies caught in market manipulation, requiring executives to return any illicit gains. Public firms that fall foul of these rules could face faster delisting. There’s also talk of stiffer penalties for unfair trading and stronger disclosure rules for crypto firms.
South Korea is already one of the world’s top retail crypto markets, with local investors holding about $76 billion in digital assets at the end of 2024. Opening ETFs could shift some of that into regulated products, smoothing out wild swings while bringing in new capital from cautious buyers.
The FSC is also looking at extending Korea Exchange trading hours from 6.5 to 12 hours a day, which could boost liquidity across all asset classes.
Despite the promise, experts say getting the final regulations right will be crucial. Custody rules must guard against hacks, pricing methods need to reflect real‑time markets, and audit standards have to verify underlying asset holdings.
Featured image from Unsplash, chart from TradingView
