South Korea to Allow Spot Bitcoin ETFs in 2026 Growth Plan
South Korea plans to introduce spot Bitcoin ETFs this 12 months as a part of its 2026 Economic Growth Strategy, whereas the Financial Services Commission accelerates phase-two digital asset legislation that can set up a complete stablecoin regulatory framework.
According to a local source, the federal government cited lively spot Bitcoin ETF buying and selling in markets together with the United States and Hong Kong as a key reference for permitting home merchandise.
Before now, there have been restrictions that prevented digital property from serving as underlying property for exchange-traded funds.
The transfer comes alongside sweeping monetary market reforms designed to appeal to overseas capital and safe South Korea’s long-pursued improve to MSCI’s developed-market index.
According to Reuters, Vice Finance Minister Lee Hyoung-il stated authorities will “put together in the primary half a roadmap for the internationalization of the gained geared toward dramatically bettering the gained’s accessibility and growing demand, corresponding to offshore gained financing.“
The authorities may even totally lengthen onshore overseas alternate buying and selling to 24-hour operations beginning July 2026.
Spot ETF Push Meet Stalled Stablecoin Framework
The spot ETF announcement follows Korea Exchange Chairman Jeong Eun-bo’s January pledge to launch crypto products, but broader digital asset laws stays gridlocked over stablecoin governance disputes between the Financial Services Commission and Bank of Korea.
The central financial institution insists stablecoins ought to be issued solely by bank-led consortia with lenders holding not less than a 51% possession stake, whereas the FSC warns that mounted thresholds may sideline expertise companies and sluggish cost innovation.
Regulators additionally disagree on whether or not a brand new licensing committee is required for stablecoin oversight.
Despite the deadlock, the FSC’s phase-two bill is predicted to embody provisions for issuer authorization with capital necessities, reserve asset administration, sustaining not less than 100% of issued quantities, and redeemability claims.
Cross-border stablecoin switch laws can be established in conjunction with the laws, in accordance to the federal government technique doc obtained by News1.
Separately, authorities plan to allocate 1 / 4 of nationwide treasury funds to digital forex deposit tokens by 2030, requiring revisions to the Bank of Korea Act and the National Treasury Management Act to set up a authorized foundation for blockchain-based funds and settlements.
The regulatory uncertainty creates rigidity between the Korea Exchange’s readiness to launch merchandise and protracted delays which have stretched again years, with the FSC’s June 2025 roadmap proposing spot crypto ETFs by no means materializing as deliberate.
During that point, the Democratic Party additionally introduced laws to amend the Capital Markets Act, increasing the definition of underlying property to embody Bitcoin and different digital currencies.
Enforcement Actions Intensify Amid Policy Uncertainty
Enforcement exercise has accelerated at the same time as legislative debates proceed, with the Financial Intelligence Unit imposing a ₩27.3 billion fine on Korbit in late December following roughly 22,000 anti-money laundering violations.
The penalty adopted earlier sanctions in opposition to Upbit operator Dunamu, which acquired a three-month suspension on new buyer accounts in February and a ₩35.2 billion tremendous in November, with Bithumb, Coinone, and GOPAX remaining beneath evaluate as authorities work by means of circumstances in inspection order.
South Korea’s Financial Intelligence Unit fines crypto alternate Korbit $1.89M over violations.#Crypto #Regulation https://t.co/fqGj3jWHWF
— Cryptonews.com (@cryptonews) December 31, 2025
Authorities are concurrently increasing transaction monitoring necessities, with a process drive reviewing whether or not to extend the travel rule to cowl crypto transfers under 1 million gained.
The proposed modifications would require exchanges to gather sender and recipient info for all digital asset transfers, no matter measurement.
Broader Market Reforms Target MSCI Upgrade
The spot ETF plan helps President Lee Jae-myung’s coverage drive to remove the “Korea low cost” and increase home market valuations, which helped the KOSPI benchmark rise 76% in 2025, its strongest efficiency since 1999.
MSCI maintained South Korea’s rising market standing in June 2025, citing restricted foreign-exchange reforms and the restricted availability of funding devices as impediments, regardless of current measures that lifted short-selling bans and prolonged gained buying and selling hours.
According to Bloomberg, Vice Finance Minister Lee Hyoung-il advised reporters the federal government expects 2% financial development this 12 months, above the Bank of Korea’s 1.8% estimate, pushed by firmer home consumption and stronger semiconductor-led exports.
The authorities forecasts a present account surplus of $135 billion for 2026, up from an estimated $118 billion final 12 months, as chip costs get well and power prices ease.
The roadmap additionally positions synthetic intelligence, semiconductors, and superior manufacturing as key development engines whereas pursuing inclusion in the FTSE World Government Bond Index and eventual MSCI developed market reclassification.
The submit South Korea to Allow Spot Bitcoin ETFs in 2026 Growth Plan appeared first on Cryptonews.
