South Korea is preparing to take a long-awaited step in the digital asset market. The country's financial regulator, the Financial Services Commission (FSC), plans to open the door to spot Bitcoin ETFs this year as part of its 2026 economic growth strategy. This makes South Korea one of the newest major markets, following the US and Hong Kong, to allow spot Bitcoin ETFs.
Spot Bitcoin ETFs on the Agenda in South Korea
Until now, crypto assets like Bitcoin were not recognized as a valid underlying asset for ETFs in the country. This effectively prevented the creation of spot Bitcoin ETFs. The planned regulatory change by the FSC aims to remove this obstacle and provide institutional investors with more direct access to the crypto market. Officials argue that this step will deepen capital markets and strengthen South Korea's position in global financial competition. The regulator is closely monitoring experiences in other countries during this process. The intense interest in spot Bitcoin ETFs in the US, in particular, serves as an important point of reference for South Korea. BlackRock, one of the world's largest asset managers, previously announced that its spot Bitcoin ETF products offered in the US have become one of the company's highest revenue streams. This suggests that similar products could see strong demand in South Korea. The current size of the country's crypto market also supports this expectation. According to data from the Korea Financial Intelligence Unit (KoFIU), the number of eligible users to trade crypto assets reached 10.7 million in the first half of last year. During the same period, the average daily trading volume was 6.4 trillion South Korean won. These figures indicate that South Korea has one of the most active individual investor bases in Asia. In addition to spot Bitcoin ETF plans, the government is also working on a comprehensive Digital Asset Law. According to local media reports, this law specifically targets stablecoins. The draft regulation proposes licensing requirements for stablecoin issuers, holding them back 100% of their value, and allowing users the right to redeem them at any time. Additionally, the framework for cross-border transfers of stablecoins is planned to be clarified.
South Korea's digital transformation agenda is not limited to the private sector. The government is also working on state-issued digital tokens, called deposit tokens, to digitize public funds. Unlike stablecoins, these tokens are intended to be directly linked to public finances. Officials aim to move 25% of treasury transactions to blockchain-based payment systems by 2030.
It is stated that pilot applications have already been launched and some legal regulations concerning the central bank and the treasury are expected to be on the agenda during the year.
