The best financial watchdog in Zuid -Korea takes steps to bring spot crypto ETFs and stablecoin regulations to the mainstream as part of a broader plan to modernize the country’s digital asset market.
According to a June 19 report Through local media Yonhap News, the Financial Services Commission (FSC) has submitted a new crypto route map to the Presidential Policy Planning Committee. The plan is the scene for launching Spot Cryptocurrency Exchange-Traded Funds (ETFs) and regulating Stablecoins by the second half of 2025.
Regulators will build the necessary legal and technical infrastructure to support the ETFs, including rules on the Fond structure, custody, prices and investor protection.
The Push of the FSC is intended to tailor the local digital market scene to global standards, after more calls from lawyers in the region who claim that the country is running the risk in other large markets without action.
Earlier this year, the newly elected president of South Korea, Lee Jae-Myung, promised to legalize Spot Crypto ETFs as part of his campaign. He also promised to create a uniform supervisory system to better protect investors and to increase market transparency.
In addition to the ETF reforms, the committee is working on legislation to regulate the issue of Korean won stablecoins. It will also tighten the rules on how virtual assets are mentioned and announced, as well as how local crypto companies and service providers work.
Another important focus of the route map is more difficult enforcement. The FSC plans to introduce stricter penalties for misconduct, including permanent prohibitions and heavy fines for people or companies involved in illegal activities.
Local exchanges are also required to reduce trading costs and improve transparency by making and comparing reimbursements. This is in line with President Lee’s earlier promise to reduce transaction costs from the current average from 0.05% to around 0.015%, as part of the efforts to support young traders.
While the route map marks an important step forward in the ambitions of the country, the FSC has emphasized That none of the proposals has been confirmed or completed, which suggests that the plan is still in the early stages.
