South Korea is set to revitalize its cryptocurrency market by moving away from its previously cautious approach. The nation's top regulator, the Financial Services Commission (FSC), has submitted a new proposal that outlines a detailed roadmap for integrating spot crypto ETFs and a native stablecoin into the country's financial system.
This move fulfills a key campaign promise from President Lee Jae-myung, who was elected on a pro-crypto platform. The FSC's plan, presented to the Presidential Committee on Policy Planning, includes:
- Spot Crypto ETFs: The FSC will prepare the legal and technical groundwork for introducing spot crypto ETFs to investors, a major policy shift from the previous administration, which had banned them due to risk concerns.
- Stablecoin Regulation: The roadmap includes a legal framework for Korean Won-based stablecoins, with the goal of reducing the country's reliance on foreign-issued stablecoins like USDT and USDC. This initiative aims to keep capital within the country and could allow local firms to issue their own digital assets. The Bank of Korea, however, has suggested that stablecoins should be developed by the central bank.
- Stricter Oversight: To protect investors, the FSC is also proposing a framework with stricter penalties for illegal activities, including lifetime bans and fines for bad actors. Crypto exchanges will be required to meet higher disclosure standards and be more transparent with trading fees and listing rules.
The initiative aligns South Korea with global financial trends and aims to position the country as a major hub for digital assets, attracting both retail and institutional investors. The proposal also includes a plan to significantly reduce current trading fees, making crypto more accessible for younger traders.
August 2025, Cryptoniteuae