South Korea may be on the verge of a significant shift in its crypto policy. The Financial Services Commission (FSC), the country’s top financial regulator, has submitted a roadmap outlining a path to approve spot cryptocurrency exchange-traded funds (ETFs), according to local reports. The proposal, filed with the Presidential Committee on Policy Planning, suggests that formal implementation measures could begin in the latter half of 2025.
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The move aligns with President Lee Jae Myung’s campaign pledge to lift the current ban on domestic spot crypto ETFs—a restriction that has long prevented South Korean investors from accessing these products within their own markets. Until now, the FSC has viewed cryptocurrency as too volatile to serve as a base asset for such funds, citing concerns over financial stability.
But change appears to be in motion. The roadmap not only signals a potential green light for spot crypto ETFs but also includes plans to legalize Korean won-based stablecoins in the second half of 2025. President Lee has framed the introduction of a won-backed stablecoin market as essential to retaining domestic capital and giving younger South Koreans more tools to build long-term financial security.
Despite the optimism sparked by the roadmap’s submission, the FSC was quick to temper expectations. On Friday, the commission released a statement clarifying that the reported details remain under discussion and are not yet finalized. Still, the very act of filing a formal roadmap indicates that regulatory momentum is building.
This isn’t the FSC’s first step toward crypto liberalization. The commission is already working on a phased framework to allow institutional investors to engage in crypto trading—a marked departure from the country’s historically cautious stance.
Beyond digital assets, the FSC is also exploring broader financial reforms. Among them is a proposal to nearly double the Korea Exchange’s trading hours from 6.5 to 12 hours daily. This move could enhance liquidity and make the market more accessible to global investors.
South Korea is home to one of the most active retail crypto markets in the world. By the end of 2023, local investors held approximately 104 trillion won (roughly $75.7 billion USD) in digital assets, according to FSC data. These latest developments reflect a growing recognition that crypto is not just a fringe market—it’s a central pillar of modern finance.
