South Korea to Approve Bitcoin ETFs in 2026’s Economic Plan

south korea

Key Points: 

  • South Korea is looking to launch a type of ETF on the Bitcoin spot in 2026.
  • The government intends to use phase-two law to regulate stablecoins, particularly in terms of approving issuers.
  • The new plans come as part of South Korea’s crypto adoption goal.

The government of South Korea has unveiled new strategies for its digital asset industry. The country stated in its Economic Growth Strategy 2026 that it would launch Bitcoin spot exchange-traded funds (ETFs) this year. 

The main aspects of the new strategy of South Korea concern the regulatory control of stablecoins, digital asset spot ETFs, and transnational transactions. The initiative is supposed to be implemented in two phases. The second phase which will be implemented this year under the banner of this initiative is the legislation of digital assets at length.

South Korea’s FSC to Introduce New Stablecoin Framework

The FSC will aim at creating an effective regulatory framework of stablecoins, which will incorporate issuer approval, reserve assets, and redemption. The regulation of stablecoins deserves special attention, as these instruments have recently become more prominent in the world of the global economy. 

The laws in South Korea will have the effect of keeping the issuers of digital assets to bear the required capital requirements and have a 100% reserve ratio to their coins. It will also allow them to have easy terms of how the coins can be redeemed by the end-user.

In addition to the stablecoins, South Korea is also interested in launching spot digital asset ETFs, such as Bitcoin ETFs, which are a case of the extended financial ecosystem. Historically, the country had a history of not being able to have spot ETFs because of the lack of consideration of the digital asset as a valid underlying asset in such financial products such as Bitcoin. 

Nevertheless, as Bitcoin spot ETFs are already trading on some of the largest markets like the U.S. and Hong Kong, the government of South Korea hopes to leverage this new financial tool and increase the interest of even more investors in digital assets. The idea is to open a spot ETF trading bitcoins and other digital currencies this year, which will be a historic move in cryptocurrency trading and investment.

South Korea Looking into Mainstream Blockchain Integration

The implementation of a spot ETF of Bitcoin in South Korea is not the only project. Besides the regulatory effort towards stablecoins and ETFs, the government is also considering the application of blockchain technology in its financial sector in a broad way. 

One of the progressive policies aims to make a quarter of the national treasury funds digital currency by 2030. The move will be part of the strategic vision of the government to incorporate payments and settlements based on blockchain use in the government and the private sector.

South Korea has already strategized on these initiatives by coming up with pilot projects that will help facilitate the use of digital currency in the country, such as the issuance of digital wallets to pay business expenses. These wallets will facilitate the application of the deposit tokens, which will be issued by the central government. Their application is aimed at making payments and settlements in the digital economy easier. 

The final aim is to establish a legal and infrastructural platform to ensure the establishment of blockchain-based finance, such as payments, settlements, and the management of digital currency.

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Maxwell Mutuma
Written by Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. With about five years of experience in the industry, he writes extensively on topics such as blockchain, cryptocurrency, tokens, and is featured in major like CryptoNewsZ, Cryptopolitan, CoinCentral and Coin Republic. Committed to spreading knowledge about cryptocurrencies and blockchain technology, Maxwell researches and reports on major industrial advancements, guiding readers through the continuously evolving world of cryptocurrencies.