South Korea Signals Bitcoin ETF Launch by 2026 in Major Crypto Policy Shift
As per a local report, the government also confirmed that this year will mark the start of a “second wave” of digital asset legislation. These new bills aim to close regulatory gaps, particularly around emerging sectors like stablecoins and blockchain-based financial products.
Stablecoin Rules and Investor Protection in Focus
A major pillar of the upcoming regulatory framework is stablecoin oversight. Authorities are working on licensing requirements for issuers, including minimum capital standards and guaranteed redemption rights for holders. While progress has been made on disclosure and reserve rules, regulators are still debating which institutions should be allowed to issue stablecoins.
At the same time, South Korea is addressing cross-border stablecoin transfers, ensuring they comply with global financial and anti-money laundering standards. These efforts reflect growing concern over investor protection as stablecoin usage continues to expand.
A Broader Digital Finance Strategy
The Bitcoin ETF push is part of a wider digital asset strategy already gaining momentum. Last year, South Korea lifted restrictions that blocked crypto firms from accessing venture capital, enabling blockchain startups to qualify for official venture certification. Institutional activity has followed, with Binance completing its acquisition of local exchange Gopax, marking its formal return to the Korean market.
Looking ahead, the government is also exploring blockchain applications in public finance. Plans include introducing deposit tokens backed by commercial bank deposits and potentially allocating up to 25% of treasury operations to blockchain-based instruments by 2030.
To support these initiatives, lawmakers aim to establish a clear legal framework for blockchain payments and settlements by the end of this year, laying the groundwork for a regulated, ETF-driven crypto market in South Korea.
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