9th January 2026 – (Seoul) South Korea is poised to approve spot bitcoin exchange-traded funds (ETFs) this year as part of a significant shift in its cryptocurrency policy, which aims to combine regulated market access with stricter stablecoin regulations and increased use of blockchain technology in public finance.
Details of this initiative were unveiled in the government’s newly released 2026 Economic Growth Strategy, with the Financial Services Commission (FSC) leading the implementation.
If sanctioned, spot bitcoin ETFs would provide domestic investors with access for the first time, aligning South Korea with markets like the United States and Hong Kong, where such products have already drawn substantial investments.
Historically, South Korea’s capital markets framework did not classify cryptocurrencies or bitcoin ETFs as eligible assets, hindering their launch. However, regulators are now re-evaluating this position, seeking to channel more crypto activity into regulated domains and diminish capital flight to offshore platforms.
The push for bitcoin ETFs coincides with a comprehensive overhaul of digital asset regulations. The FSC is accelerating the development of “Phase Two” digital asset legislation, which will focus extensively on stablecoins.
The proposed legislation intends to implement a licensing system for stablecoin issuers, establish minimum capital requirements, and enforce strict reserve rules ensuring a minimum 100% backing for issued tokens. Additionally, issuers will need to guarantee user redemption rights, a measure aimed at preventing crises similar to the 2022 Terra-Luna collapse that resulted in a $40 billion loss, heavily affecting South Korea.
On the international front, authorities are also crafting standards for cross-border stablecoin transactions, addressing the growing role of digital tokens in trade and remittances, in collaboration with the Ministry of Economy and Finance.
Inspiration for these changes partly stems from the strong demand for spot bitcoin ETFs in the U.S. and Hong Kong, where major asset managers have begun to regard these products as mainstream investment options. The Financial Intelligence Unit in Korea estimates that over 10 million individuals are eligible to trade digital assets domestically, highlighting substantial potential demand.
Beyond private markets, the government is advancing blockchain integration in public finance. Plans include digitising certain aspects of the national treasury using “deposit tokens,” a government-linked digital currency separate from stablecoins. By 2030, as much as 25% of treasury operations may be processed through blockchain-based payments.
