South Korea is getting ready to make a big move in the crypto world. They’re aiming to launch Bitcoin and other cryptocurrency exchange-traded funds (ETFs) by the end of 2025.
ETFs Coming Soon?
The Financial Services Commission (FSC) has laid out a plan to the government, detailing new rules and systems for these crypto ETFs. This follows President Lee Jae-myung’s pledge to bring crypto into the mainstream. The goal is to have everything in place for approval by the second half of 2025, though things could change. Regular investors will likely buy these ETFs through their regular brokerage accounts.
Won-Backed Stablecoin
Along with ETFs, South Korea also wants to launch a stablecoin pegged to the Korean won by the end of 2025. The idea is to reduce money leaving the country and provide a new digital payment system. Strict rules on how it’s issued, managed, and audited will be put in place to build trust.
Protecting Investors
Investor protection is a key part of the plan. There will be tough penalties for market manipulation, including forcing executives to give back any illegal profits. Companies caught breaking the rules could be delisted quickly. There will also be stricter rules on fair trading and more transparency from crypto companies.
What This Means
South Korea already has a huge retail crypto market, with investors holding around $76 billion in digital assets at the end of 2024. These ETFs could bring some of that into regulated investments, making things less volatile and attracting new investors. The plan also includes extending trading hours on the Korea Exchange, which should improve liquidity.
Challenges Ahead
Experts say getting the details right is crucial. This includes strong security to prevent hacks, accurate pricing that reflects real-time market conditions, and reliable audits to verify the assets.
A Big Change
This plan shows a major shift in South Korea’s approach to crypto. If it goes ahead, South Korea will join the US, Canada, and parts of Europe in offering spot crypto ETFs, possibly influencing other Asian countries to do the same.