South Korea’s top financial regulator is working on a detailed roadmap to support the launch of digital asset spot exchange-traded funds.
According to a June 19 report by Herald Economy, the Financial Services Commission revealed the move during a policy update to the State Affairs Planning Committee.
The FSC plans to roll out its proposal in the second half of the year. It will evaluate the implications of introducing crypto-based spot ETFs, including potential risks to financial stability, investor exposure, and the broader economy.
The agency also intends to build the necessary infrastructure for listing and managing such ETFs while ensuring investor safeguards.
This policy push aligns with campaign pledges made by President Lee Jae-myung, who previously advocated for allowing the issuance and trading of Bitcoin-based ETFs and similar investment products tied to digital assets.
Stablecoin oversight and fee structure under review
Beyond the ETF rollout, the FSC is advancing the second phase of its digital asset legislation.
This next step will focus on regulations for asset listings, disclosures, business practices, and crackdowns on unfair market activity.
A key part of the effort will be aligning stablecoin rules with international standards while protecting users and enhancing market transparency.
Notably, South Korean authorities are particularly concerned about the growing influence of US dollar-denominated stablecoins in the domestic market. Lee Chang-yong, the governor of the Bank of Korea, recently cautioned that won-pegged stablecoins could increase demand for the US dollar, raising macroeconomic risks.
Meanwhile, the FSC reportedly plans to launch a market-wide review of transaction fees charged by local crypto exchanges.
The review will initially target South Korea’s largest exchanges, including Upbit, Bithumb, and Coinone.
Key areas of interest include how these platforms’ fees are structured, whether they disclose this information transparently, and the extent of voluntary fee reductions.
South Korea’s latest regulatory steps reflect its intent to balance innovation with user protection as it reshapes its crypto market policy