South Korea plans spot Bitcoin and Ethereum ETFs this year
South Korea plans to approve spot Bitcoin ETFs by end of 2025.
South Korea’s ruling People Power Party unveiled a major initiative to transform the country’s digital asset ecosystem, including plans to approve spot Bitcoin ETFs before the end of 2025.
Representative Park Soo-min announced the reforms on Thursday, emphasizing that South Korea must act swiftly as rivals like the U.S., Hong Kong, and the U.K. have already greenlit crypto-backed ETFs, reports Crypto News.
“Korea has no time to delay,” Park said, noting that the new rules will allow retail and institutional investors to access Bitcoin and Ethereum through regulated exchange-traded products for the first time.
The ETF approval is one of seven key policy changes proposed by the Party to stimulate innovation, open up institutional crypto participation, and ease regulatory bottlenecks that have constrained market growth.
Key reforms include ETF launches, banking liberalization, and new crypto tax laws
In addition to permitting spot Bitcoin ETF trading, the proposed reforms aim to:
- Allow more than 3,500 corporations and investment institutions to freely trade digital assets without existing restrictions starting this year.
- Abolish the “One Crypto Exchange, One Bank” policy, enabling exchanges to partner with multiple banks to improve operational flexibility and competition.
- Create a new regulatory framework for tokenized securities (STOs) and establish stablecoin rules aligned with international standards.
- Introduce a comprehensive digital asset basic law to regulate the sector holistically.
- Develop a new crypto taxation system to provide clarity for investors and businesses.
The Party also plans to create a special committee on virtual assets, reporting directly to the next presidential candidate, to oversee rapid implementation of the changes.
Crypto demand surges among young and wealthy South Koreans
The timing of these initiatives reflects growing domestic demand.A recent Hana Bank report found that over 30% of wealthy South Koreans now prefer crypto for long-term investment, outpacing traditional assets like gold and real estate.Younger investors are also increasingly drawn to digital assets, seeking higher returns and financial innovation.
Rep. Park stressed that the new reforms will prevent outdated regulations from stifling South Korea’s financial future:
“We will not allow the authorities’ outdated regulations to hinder the growth of virtual assets that can help finance grow.”
With these sweeping measures, South Korea aims to reclaim a leadership role in the global crypto economy and build a strong foundation for blockchain-driven industrial innovation.
Recently we wrote, that the Bank of Korea (BOK) announced Monday that it will take an active role in crafting South Korea’s forthcoming regulatory framework for stablecoins, citing growing concerns about their impact on monetary and financial stability.
