South Korea Exploring Cryptocurrency ETFs in 2025 Amid Demand

On Thursday, South Korea Stock Exchange Chairman Jeong Eun-bo revealed his plan to “explore” the approval of cryptocurrency-based exchange-traded funds (ETFs) to continue the “higher value program” and face the ongoing market. Challenges.

The Korea Stock Exchange explores cryptocurrency ETFs

On January 2, Jeong Eun-po Announce The Korea Stock Exchange plans to explore cryptocurrency-based ETFs this year at the 2025 Securities and Derivatives Market Open Ceremony. The chairman stated that South Korea’s capital markets faced major challenges in 2024, weakening the growth potential of local companies.

Jeong also noted that global conflicts and domestic political developments have made the market “significantly sluggish compared to major countries.” The South Korean market will continue to face risks this new year as “domestic and global economic conditions are unfavorable.”

However, the Chairman explained that the exchange will continue to strengthen its value program “to engage more leading companies and establish a management culture focused on shareholder value.”

Furthermore, Jeong revealed that the KSE will “measure the outliers of new business avenues such as cryptocurrency ETFs and explore new areas of the capital market.”

It is worth noting that crypto ETFs were as well Forbidden in South Korea since 2017. The country’s regulatory body, the Financial Services Commission (FSC), reiterated its position after the US Securities and Exchange Commission (SEC) approved cryptocurrency-based investment products last year.

However, the FCA announced in October that a newly formed advisory group to discuss digital asset policies would review the ban, signaling a clear shift away from strict regulation. This shift appears to be influenced by the success of Bitcoin and Ethereum ETFs, which Transgression Most experts’ predictions in their first year.

Political crisis in South Korea halts new regulations

Former Chairman of the Korea Stock Exchange Named To institutionalize cryptocurrencies in the country in order to “create added value.” Jeong stated that lawmakers and financial institutions should look at digital assets differently, arguing that the industry has grown and become hugely influential in recent years.

The chairman added that South Korea should consider integrating digital assets into institutional finance, as the market needs to be revitalized to compete with other countries.

The current stance of the regulator on digital assets has made the market fail to cross various regulatory boundaries for years, posing a challenge to the market’s development and competitiveness. However, regulations regarding cryptocurrencies will be halted until the political crisis is resolved, which could take a few months.

In December, South Korean President Yoon Suk-yeol Announce The first martial law emergency in four decades. Yoon accused the country’s opposition Democratic Party, which has a majority in the National Assembly, of sympathizing with North Korea and anti-state activities.

The National Assembly voted to overturn the president’s declaration and successfully ended the state of emergency in six hours. The assembly has since dismissed Yoon and Prime Minister Han Dak-soo, who became acting president after Yoon’s powers were suspended.

According to the Associated Press ReportsSouth Korea’s presidential security service prevented authorities from detaining Yoon today in a six-hour standoff at the accused president’s residence.

As a result, the anti-corruption agency plans to “strongly demand” that the current acting head, Deputy Prime Minister Choi Sang-mok, instruct the agency to comply with the implementation of the arrest warrant.

The Constitutional Court is scheduled to determine whether to remove Yoon from his position or restore him to his position. To remove him, at least six justices on the nine-member court must vote in his favor.

Total crypto market capitalization is at $3.41 trillion in the one-week chart. Source: TOTAL on TradingView

Featured image from Unsplash.com, chart from TradingView.com