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- South Korea plans to allow spot digital asset ETFs this year.
- The move follows active Bitcoin ETF trading in the US and Hong Kong.
- New laws will tighten rules for stablecoins and cross-border transfers.
South Korea signaled a shift in digital asset policy as part of its 2026 Economic Growth Strategy. The government confirmed plans to permit spot digital asset exchange-traded funds, including products tied to bitcoin, within the year. This step marks a change for a market that has long barred such products.
Authorities pointed to overseas markets as proof of maturity. Spot Bitcoin ETFs already trade with strong volume in the United States and Hong Kong. Now officials see enough structure to move forward at home. The effort will be led by the Financial Services Commission.
It thus seeks to balance innovation with the protection of investors. All in all, digital assets sit closer to national financial planning. The strategy frames crypto markets as means for growth, rather than just risk. In large part, this reflects the rising tide of institutional demand and global competition.
Lawmakers Advance Bitcoin and Stablecoin Rules
The second-phase legislation concerning digital assets will also be advanced by the government. Lawmakers are planning a new bill this year. Stablecoins are the real center of this effort. Regulators want clarity on standards for issuers and users. Stablecoin issuers will fall under formal authorization via a bill.
There will be capital thresholds. Issuers will also have to be careful in managing reserves: the reserve rules will require full backing; at least one hundred percent of the issued value must sit in approved assets. The law will also secure the redemption rights of holders.
These steps try to avoid sudden loss of confidence. The officials want to avoid shocks seen in past failures. Strict rules should support the safer use in payments and trading. The bill will also address cross-border activity.
Authorities will implement new controls on overseas transfers and settlements: FSC will work in cooperation with the Ministry of Strategy and Finance in efforts to set standards for reporting and oversight.
Korea Opens ETF Market to Digital Assets
Alongside the reform of stablecoins, the government will open the way to spot digital-asset ETFs. So far, Korean regulations have banned such products. Digital assets were not recognized as eligible ETF underlying assets. The new blueprint lifts that hurdle. Regulators now acknowledge Bitcoin markets demonstrate depth and transparency.
Spot ETFs may reshape local investment flows. They can attract institutions that avoid direct token custody. Pension funds and asset managers may get easier exposure. This shift may also improve price discovery.
The strategy goes beyond ETFs to flesh out a longer-term vision for digital currency. Deposit tokens pegged to national treasury funds could be put to use by the government in 2030, officials project, with up to a quarter of treasury operations targeted, depending on the outcome of the pilot.
Legal changes will follow. Revisions to the central bank law and rules governing the treasury will support blockchain payments. Electronic wallets will be allowed for business use. These are all moves that show a commitment to digital finance.
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