tl;dr
South Korea's Financial Services Commission (FSC) is developing a roadmap to launch digital asset spot Bitcoin ETFs, planning to propose this in the second half of the year. The FSC will assess risks to financial stability, investor exposure, and the economy while building necessary infrastructure a...
South Korea’s Financial Services Commission (FSC) is actively developing a comprehensive roadmap to launch crypto-based spot Bitcoin exchange-traded funds (ETFs), aiming to propose this initiative in the latter half of the year. The FSC plans to carefully evaluate potential risks related to financial stability, investor exposure, and the broader economy while simultaneously building the essential infrastructure to support these ETFs and ensuring robust investor protections.
This move is in direct alignment with President Lee Jae-myung's campaign promises to legalize Bitcoin-based ETFs and similar digital asset investment products, signaling strong governmental support for cryptocurrency innovation within the country. Beyond ETFs, the FSC is progressing with regulatory updates focusing on asset listings, disclosures, business practices, and addressing unfair market activities.
A significant emphasis is placed on stablecoin oversight, particularly concerning US dollar-pegged stablecoins, which have raised concerns over macroeconomic risks, as highlighted by officials including the governor of the Bank of Korea. The FSC intends to align cryptocurrency regulations with international standards to enhance market transparency and user protection.
Additionally, a market-wide review of transaction fees charged by major local crypto exchanges like Upbit, Bithumb, and Coinone is underway. This review targets the structure of fees, transparency in disclosure, and the extent of voluntary fee reductions, reflecting South Korea’s balanced approach to fostering innovation while safeguarding investors.
Overall, South Korea is making thoughtful advances in its cryptocurrency regulatory landscape, seeking to harmonize market growth with prudent risk management. These developments mark a significant step toward mainstreaming Bitcoin ETFs and reinforcing the country’s position as a forward-looking player in the global digital asset industry.