South Korea, led by the Financial Services Commission, is preparing to launch crypto ETFs and a KRW-pegged stablecoin by late 2025.
South Korea's Plans for Crypto ETFs and Stablecoin
The South Korean government, led by the Financial Services Commission (FSC), is introducing measures to launch crypto ETFs and a KRW-pegged stablecoin by late 2025. This marks a significant policy shift from the ETF bans previously enforced in 2017.
Key Players in the Initiative
The initiative involves key figures such as President Lee Jae-myung, who advocates for cryptocurrency integration, and KakaoBank, which is actively developing the KRW-backed stablecoin. Both the FSC and KakaoBank have publicly confirmed their leading roles.
Possible Impact on the Market
The announcement could influence market dynamics by facilitating institutional entries and boosting retail participation. Increased liquidity and market stability are expected, along with broader acceptance of digital assets. Economically, this initiative may lead to enhanced financial innovation and regulatory evolution.
The plans to launch crypto ETFs and a stablecoin may significantly enhance the legitimacy of the crypto market in South Korea and drive investment inflows, paralleling recent ETF launches in the U.S. and Europe.
