The South Korea Financial Services Committee (FSC) has submitted a roadmap to the Presidential Planning Committee, describing a potential framework to approve the Crypto Crypto-Echange (ETF) funds, according to the Yonhap news agency.
The main dishes to remember:
- The financial regulator of South Korea submitted a roadmap to approve the Crypto ETF.
- The plan reflects President Lee’s pressure to modernize the regulation of digital assets.
- The FSC’s quarter of work marks a rupture of its previous position according to which the Crypto ETF posed financial risks.
This decision indicates a possible change in the regulatory posture under President Lee Jae Myung, who campaigned to soften the restrictions around digital assets.
The roadmap offers implementation measures for the SPOT Crypto FNB in the second half of 2025 and marks a significant difference in the long -standing position of the FSC according to which these products have risks of financial stability.
The FSC of South Korea previously blocked Crypto ETF on volatility concerns
Until now, the FSC has prevented the Crypto ETF from being issued or exchanged in South Korea, invoking concerns concerning volatility and aptitude of cryptocurrencies as basic active ingredients.
The change is aligned with the commitment of President Lee to modernize the financial landscape of South Korea and offer more opportunities to young investors to build wealth thanks to regulated exposure on digital assets.
The roadmap would also include plans aimed at introducing regulatory frameworks for Korean stablecoins based at the end of 2025.
President Lee previously highlighted the importance of developing a national stable market to reduce capital flight and maintain liquidity in the economy of South Korea.
Following the media coverage, the FSC published a declaration specifying that the proposals reported are not finalized.
The Commission stressed that the roadmap remains under examination and that details can change as consultations continue.
Even before the last deposit, the FSC had gradually opened the door to the participation of institutional cryptography.
Earlier this year, it began to treat gradual approvals for institutional investors to obtain limited access to the digital asset market.
Beyond the crypto, the FSC also plans to wider reforms, including a proposal for a double negotiation hours in Korea Exchange, extending them from 6.5 to 12 hours per day.
South Korea houses one of the most active retail crypto markets in the world. At the end of 2024, local investors held around 104 won wolves (approximately $ 75.7 billion) in digital assets, according to FSC data.
The South Korea’s power party offers a bill on stables
The Democratic Party of South Korea introduced a bill to legalize the issuance of stablescoin by national companies, marking the first policy of major crypto under the newly elected president Lee Jae-Myung.
The proposal sparked a net rally in the actions related to the crypto, Kakaopay jumping 18% while investors welcomed the apparent government commitment to the innovation of digital assets.
The bill, which is part of the broader law on digital assets, would allow stablecoins supported by reserves and issued by companies with a minimum capital of 500 million won.
He also calls for the creation of a presidential digital asset committee and obliges regulatory monitoring by the Financial Services Commission through a process of approval and report.
Despite an increasing political dynamic, the initiative faces the resistance of the Korean bank.
Governor Rhee Chang-Yong has warned that the floors issued by non-banking entities could interfere with monetary policy and maintains that the central bank should control any development of a digital currency based on WON.
The regulator post of the first deposit of the South Korea roadmap to approve the Crypto Spot ETF appeared first on Cryptonews.
