South Korea to Launch Spot Bitcoin ETF by 2026 Amid Digital Asset Expansion
South Korea's Ambitious Plans for Bitcoin ETFs
The South Korean government has outlined its intention to promote digital asset exchange-traded funds (ETFs), with a specific focus on Bitcoin ETFs, targeting a launch by 2026. This initiative aligns with recent advancements in stablecoin regulation and blockchain-based settlement systems.
Bitcoin ETF Launch by 2026
According to a recent report, South Korea aims to list its inaugural Bitcoin ETF by 2026, as part of its newly unveiled 2026 Economic Growth Strategy. This roadmap includes the introduction of comprehensive digital asset legislation, marking a significant regulatory phase.
Key elements of the proposal involve stablecoin regulation, with plans to establish licensing requirements for issuers, including capital prerequisites and redemption rights for holders.
South Korea's regulators are also advancing plans for spot digital asset ETFs, inspired by similar developments in the U.S. and Hong Kong, potentially paving the way for a 2026 Bitcoin ETF launch.
Regulatory Developments and Investor Protection
National authorities have outlined compliance strategies for cross-border stablecoin transfers. Recent discussions by the Financial Services Commission (FSC) have centered on digital asset regulation, focusing on investor protection amid rising stablecoin adoption.
While progress has been made in disclosure and reserve standards, consensus on eligible institutions for stablecoin issuance remains elusive.
Broader Digital Asset Strategy
These policy shifts underscore South Korea's growing embrace of digital assets. In a notable policy reversal, the country lifted a ban on venture capital investment in crypto firms last year, enabling blockchain startups to seek venture certification.
Institutional interest is also rising. Binance, the largest crypto exchange globally, recently acquired Gopax, a major South Korean exchange, marking its return to the local market.
Beyond the Bitcoin ETF plans, the government is exploring blockchain technology's role in public finance, proposing a 'deposit token' backed by commercial bank deposits. The initiative could allocate up to a quarter of the national treasury to these instruments by 2030.
To facilitate these advancements, legal frameworks for blockchain-based payment and settlement systems are expected to be established by year-end through revisions to the Bank of Korea Act and Treasury Administration Act.
Additionally, wallets for managing deposit tokens in government transactions are under consideration.