South Korea Eyes Crypto ETFs in 2025 After 7-Year Ban

• South Korea plans to reintroduce crypto ETFs in 2025, inspired by the global success of Bitcoin and Ethereum ETFs.
• The Korea Exchange is benchmarking global cases to establish crypto ETFs, aiming to revive its sluggish financial market.

South Korea is taking a significant move toward re-entering the global crypto industry by hinting at the launch of crypto exchange-traded funds (ETFs) in 2025. Following a seven-year ban on such financial instruments, this action shows the nation’s will to resuscitate its stagnant market and restore a competitive edge abroad.

Inspired by the success of Bitcoin and Ethereum ETFs in exceeding market expectations last year, the Korea Exchange is currently benchmarking abroad examples to build its framework.

Seoul Considers Greenlighting Crypto ETFs

After a 7-year ban, South Korea's regulators are hinting at launching crypto ETFs in 2025, inspired by the global hype around Bitcoin and Ethereum ETFs smashing expectations last year.

With the Korea Exchange “benchmarking overseas… pic.twitter.com/iwBBOc3Xxy

— Mario Nawfal’s Roundtable (@RoundtableSpace) January 12, 2025

South Korea Advances STO Plans Amid Political and Regulatory Challenges 

Complementing the momentum, the Financial Services Commission (FSC) has indicated preparedness to carry out ideas for Security Token Offerings (STOs) under the same schedule. This advancement emphasizes the regulator’s dedication to upgrading the financial industry by means of other growth paths.

Planned enhancements call for institutionalizing platforms for STOs, simplifying the listing and delisting processes, and upgrading IPO systems. These steps taken together should give companies creative instruments for growth and draw a larger base of institutional and retail investors.

However, there are still obstacles to overcome. The political environment of South Korea has presented challenges like legislative delays resulting from the impeachment proceedings involving President Yoon Suk-yeol. Notwithstanding these challenges, regulatory authorities are determined to improve South Korea’s global reputation by means of evolving crypto rules.

Besides that, as we previously highlighted, Jeju Island also intends to introduce NFT-based travel cards in 2025, in another noteworthy project. These cards will combine easily with the island’s Tamna Jeon stablecoin to give guests a special and rewarding experience by offering travel benefits and attraction discounts.

This creative technique highlights the adaptability of blockchain technology by showing how digital assets may surpass finance into tourism.

Previously, CNF reported the FSC plans to enable corporate investment in cryptocurrencies beginning with non-profit groups. This fits initiatives to unify South Korea’s legal system with international norms by improving self-regulation and defining precise listing requirements.