South Korea is moving closer to a decision on Bitcoin exchange-traded funds (ETFs), according to a report from local publication Maeil Business Newspaper (MK).
MK notes that the South Korean government is closely monitoring Japan’s evolving stance on digital assets. Japan, previously cautious about crypto, is now reconsidering its regulatory approach.
Financial Supervisory Service (FSA0 of South Korea recently reviewed legislative trends from Japan’s Financial Services Agency (FSA) and shared its findings with relevant institutions. On February 10, Japanese media outlet Nikkei reported that the FSA is considering c lassifying crypto as a financial product alongside securities, potentially lifting Japan’s ban on crypto ETFs. Discussions are expected to continue through mid-2025, with a legislative plan submitted to Japan’s National Assembly in 2026.
Following a virtual asset committee meeting, Kim So-young, vice chairman of South Korea’s Financial Services Commission, commented on the issue:
“I have continued to say that I would carefully review (spot Bitcoin ETFs), and it is similar in the broader context. There are countries that have not yet introduced it. There are England and Japan.”
Crypto regulation efforts in South Korea persist despite political turmoil. Over 30% of South Koreans invest in digital assets, and the country has maintained its focus on compliance and enforcement.
After the January 15 arrest of former president Yoon Suk Yeol following an attempt to impose martial law, the government has continued regulatory initiatives. On February 13, the Financial Services Commission announced that charities and universities will be permitted to sell crypto donations starting in the second half of 2025.
Enforcement actions have also intensified. On January 16, leading cryptocurrency exchange Upbit received a suspension notice for alleged Know Your Customer (KYC) violations. In response, Upbit filed a lawsuit against South Korea’s Financial Intelligence Unit to challenge the business sanctions.
