South Korea’s stock exchange is thinking about letting people invest in cryptocurrencies through exchange-traded funds (ETFs) in 2025. This is part of a bigger plan to boost the country’s struggling stock market.
Why the Change of Heart?
The Korea Exchange (KRX) says the South Korean market has been pretty weak lately, partly due to global issues and political problems at home. They believe allowing crypto ETFs, something banned since 2017, could attract more investment and help the market grow. The success of crypto ETFs in other countries, especially the US, has also influenced this decision.
Political Roadblocks
However, things aren’t so simple. South Korea is currently facing a major political crisis, with the president facing impeachment. This political turmoil means any new regulations, including those related to crypto, are on hold for now, possibly for several months. The situation is pretty chaotic, with a standoff between authorities and the president’s security service. The final decision on the president’s fate rests with the Constitutional Court.
The Future of Crypto in South Korea
The KRX’s interest in crypto ETFs shows a potential shift in how South Korea views digital assets. They believe that embracing crypto could be key to making their financial markets more competitive internationally. But the political climate will ultimately determine when – or if – these ETFs become a reality.
