In a significant move for the cryptocurrency market, South Korea's Financial Services Commission (FSC) is set to approve local spot cryptocurrency exchange-traded funds (ETFs) in 2025. This decision also includes allowing institutional crypto trading, marking a shift in the country's approach to digital assets.
The FSC is currently preparing the necessary implementation measures for spot crypto ETFs. This initiative aligns with the government's broader strategy to foster innovation in the financial sector. The move is expected to provide new avenues for investment and trading within the South Korean market.
Approximately 3,500 listed companies and professional investment corporations will be permitted to open corporate accounts for virtual asset ownership and trading on a pilot basis. Furthermore, stricter Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements will be implemented for crypto exchanges and banks to ensure regulatory compliance and investor protection. The current market prices for Bitcoin (BTC) and Ethereum (ETH) will be closely monitored as these developments unfold.