South Korea to Allow Spot Crypto ETFs Under 2026 Strategy

South Korea plans to allow spot digital asset ETFs, including Bitcoin ETFs, as part of its 2026 Economic Growth Strategy.
The decision follows active spot Bitcoin ETF trading in the U.S. and Hong Kong.
Current regulations prevent cryptocurrencies from being ETF underlying assets; changes are expected by 2026.
The Financial Services Commission will accelerate Digital Asset Phase 2 legislation focusing on stablecoin regulation.
Issuers need government approval, minimum capital, full reserve backing, and guaranteed redemption rights.
This structure aims to avoid failures like the 2022 Terra-Luna collapse.
Rules for cross-border stablecoin transfers are being drafted to support trade settlements and remittances.
Spot ETF approval could allow pension funds and asset managers regulated exposure to crypto.
Blockchain integration into fiscal operations is planned, with up to 25% of the national treasury distributed through digital assets by 2030.
A pilot program using deposit tokens for subsidies will begin in early 2026.
The system seeks to shorten settlement times, reduce fraud, and cut costs.
Amendments to the Bank of Korea Act and National Treasury Act are planned to establish blockchain-based payment systems.
The government is reviewing wallet infrastructure, point-of-sale integration, and links to the national fiscal information system.