South Korea Eyes Bitcoin ETF Launch as Part of Expanding Digital Asset Strategy

The South Korean government is accelerating its push into digital assets, with plans to promote exchange-traded funds (ETFs) linked to cryptocurrencies, including a potential spot Bitcoin ETF by 2026. This initiative is part of the country’s newly unveiled 2026 Economic Growth Strategy, which outlines a broader roadmap for digital asset regulation, stablecoins, and blockchain-based financial infrastructure.

According to the plan, regulators will begin drafting a second wave of digital asset legislation within this year. A major focus of the proposed bills is stablecoin regulation, including the introduction of a formal licensing system for issuers. This framework is expected to set capital requirements, define redemption rights for holders, and establish safeguards aimed at investor protection. While progress has been made around disclosure and reserve standards, authorities have yet to reach a consensus on which institutions will be permitted to issue stablecoins.

The government has also confirmed its intention to move forward with spot digital asset ETFs, following precedents set by markets such as the United States and Hong Kong, where spot Bitcoin ETFs are already trading. These developments are seen as laying the groundwork for South Korea’s first spot Bitcoin ETF, potentially launching in 2026 once regulatory structures are finalized.

In parallel, regulators are addressing cross-border stablecoin transfers, ensuring compliance with international standards as adoption continues to grow. These efforts come amid ongoing discussions led by the Financial Services Commission (FSC), which has emphasized the need for stronger investor protection as stablecoin usage expands.

Beyond ETFs and stablecoins, South Korea is pursuing a wider digital asset agenda. Last year, the country lifted a long-standing ban that prevented crypto-related firms from accessing venture capital, allowing blockchain startups to qualify for venture certification. Institutional interest has increased as well, highlighted by Binance’s acquisition of local exchange Gopax, marking its return to the Korean market.

The government is also exploring blockchain applications in public finance, including a “deposit token” backed by commercial bank deposits. By 2030, up to 25% of the national treasury could be distributed through such instruments. To support this vision, authorities plan to revise key financial laws by the end of this year, creating a legal framework for blockchain-based payment and settlement systems, along with compatible digital wallets for government use.