South Korea strives for spot crypto ETFs and supervision of stable coins

The South Korean Financial Service Service Commission (FSC) is currently working on a proposal to support the introduction of spot crypto ETFs, which is to be published in the second half of 2025.
The supervisory authority plantto evaluate potential financial risks, the risk of investors and the need for infrastructure and at the same time increase the protection of users.
This step reflects President Lee Jae-Myung's election promise to allow Bitcoin-based ETFs, and is in accordance with the general efforts to formalize crypto investment instruments in the country.
In addition to promoting ETFs, the FSC is driving new rules for the listing, disclosure and market behavior of digital assets. Stable coins are also currently being checked, with officials warning that increasing dependence on token coupled to the dollar could increase macroeconomic risks.
FSC plans to adapt the regulations to international standards and to improve market transparency.
In addition, the leading exchanges of South Korea – Upbit, Bithumb and Coinone – are subjected to a review of their transaction fee structures initiated by the government to ensure fairness and proper disclosure.