TLDR
South Korea’s FSC to legalize spot crypto ETFs by late 2025 under a new roadmap.
KRW-backed stablecoins set for regulatory approval to curb capital outflow.
Crypto exchange fees face scrutiny as FSC launches review of local platforms.
Institutional access to crypto expands amid $75.7B in national digital holdings.
South Korea has taken a key step toward integrating digital assets into its financial system. The Financial Services Commission (FSC), the country’s top financial authority, has submitted a formal roadmap to approve local spot cryptocurrency exchange-traded funds (ETFs). This was reported by several South Korean news outlets on June 19, 2025.
The roadmap was presented to the Presidential Committee on Policy Planning, which confirmed that preparations for spot crypto ETF implementation will begin in the second half of 2025. This move aligns with President Lee Jae-myung’s earlier campaign promise to remove the ban on domestic crypto ETFs.
Policy Shift from the Financial Services Commission
The FSC had previously blocked the issuance and trading of cryptocurrency ETFs, citing risks to financial stability and the nature of crypto assets. The agency viewed digital currencies as unstable and unsuitable for traditional investment vehicles.
However, the new administration is shifting that position. According to a report from Yonhap News Agency, the FSC has outlined measures to support regulated spot crypto ETFs. The agency is now working to establish legal and regulatory systems that will support a stable market for such products.
The roadmap also includes guidelines to allow financial institutions and asset managers to participate in offering and managing these ETFs. This change could attract wider institutional investment into the country’s growing crypto sector.
Plan to Legalize KRW-Based Stablecoins
In addition to the ETF roadmap, the FSC’s policy draft contains provisions for introducing Korean won-based stablecoins. These digital assets would be fully backed by the national currency and subject to regulatory oversight.
President Lee has emphasized the need for local stablecoins to prevent capital from leaving South Korea. During a policy discussion in May, he stated, “We must build a won-based stablecoin market to keep investment within the country.”
The stablecoin framework is expected to be finalized by late 2025. The FSC will work with other financial and technology agencies to draft rules for issuance, management, and compliance of these assets.
Crypto Exchange Fees Under Review
Alongside its broader crypto agenda, the FSC also announced a planned investigation into transaction fees charged by local cryptocurrency exchanges. This review aims to determine whether current fees place too much burden on retail investors compared to overseas markets.
The Herald Economy reported that the FSC will conduct a detailed survey of domestic crypto exchanges. The regulator will analyze fee structures, collection methods, and overall charges. “We need to examine whether the current fees of domestic exchanges are an excessive burden on consumers,” an FSC official was quoted as saying.
No specific fee cap has been proposed yet. However, the commission said it would compare domestic rates with global platforms and consider user preferences while drafting fee-related policies.
Further Expansion of Crypto Market Access
The FSC has also started approving limited crypto trading access for institutional investors. This phased process is intended to bring traditional financial players into the digital asset market under strict regulations.
South Korea is one of the most active retail crypto markets worldwide. By the end of 2024, local crypto holdings were valued at over 104 trillion Korean won (approximately $75.7 billion), based on data from the FSC.
Apart from digital assets, the FSC is also reviewing whether to extend the trading hours of the Korea Exchange. A proposal has been introduced to increase daily trading time from 6.5 hours to 12 hours, which may improve market liquidity and align with global exchanges.
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