South Korea is taking steps towards the legalization of cryptocurrencies by planning the launch of spot crypto ETFs and stablecoins, which could transform the market.
Plans for Crypto ETF Launch
The Financial Services Commission (FSC) of South Korea has submitted plans to launch spot crypto ETFs and Korean won-based stablecoins by the second half of 2025. This marks a significant step as a previous ban on cryptocurrencies was imposed in 2017 due to concerns over financial stability.
New Regulatory Landscape
The FSC has developed a regulatory framework focusing on investor protection and risk management associated with crypto assets. While details remain under consideration, standards for crypto ETFs are expected to mirror those applied in traditional markets.
Impact of New Political Initiatives
The regulatory changes align with President Lee Jae-myung's pro-crypto stance, who has pledged support for digital assets. His recent proposal for a Digital Asset Basic Act could open new opportunities for local businesses.
South Korea's initiatives to introduce crypto ETFs and stablecoins could have a profound impact on fintech and create a more stable and secure environment for investors.
