The government of South Korea has announced plans for the promotion of digital asset exchange-traded funds, especially a Bitcoin ETF, within this year. This is coming after a series of developments regarding stablecoins and blockchain-based settlements.
South Korea Gov Plans to Launch Bitcoin ETFs by 2026
As reported, the country has a plan to list its first ETF on BTC this year. The policy direction was decided in the newly announced 2026 Economic Growth Strategy of the country.
According to the roadmap, this year, regulators will begin working on a set of digital asset bills termed as a second wave of legislation.
Among others, one of the essential components of the proposal is stablecoin regulation. The relevant parties are to propose a license for issuance that would involve capital requirements as well as the right of redemption for holders.
Apart from the national regulations, the regulators have also set out how the cross-border transfer of the stablecoins will be done in compliance.
It was also confirmed that the government has plans to proceed with the launch of spot digital asset exchange-traded funds. This is following the developments in other markets. This includes as the U.S. and Hong Kong, where spot products are actively being traded. This could open the way for the launch of the spot Bitcoin ETF in 2026.
The reports come after news last month that the FSC has been involved in discussions regarding regulation of digital assets. This is particularly in relation to protecting investors because of the rise in stablecoins adoption.
Despite the progress that has been achieved regarding disclosure and reserve standards, a consensus on which institutions are eligible to issue stablecoins has not been reached.
Larger Digital Asset Push Taking Hold
The recent policy changes and highlight the increasing adoption trend of digital assets in the country. In September last year, South Korea lifted a long-standing ban that stopped crypto-related firms from accessing venture capital funding. That allowed blockchain startups to qualify for venture certification.
And institutional interest has followed. Binance, the world’s largest crypto exchange by volume, late last year finalized an acquisition of Gopax, one of the nation’s largest exchanges. The deal also marked Binance’s official return to the local market after regulatory delays.
Apart from the Bitcoin ETF plan, the government is also considering the use of blockchain technology in public finance. It has plans to introduce a ‘deposit token’. This is a type of cryptocurrency that is collateralized by commercial bank deposits. It can also distribute up to a quarter of the nation’s treasury to these instruments by the year 2030.
To make all this a reality, the government plans to establish a legal framework regarding blockchain-based payment and settlement systems by the end of this year through revisions in both the Bank of Korea Act and the Treasury Administration Act.
Even wallets equipped to manage deposit tokens for government-related expenses are under consideration.
Source: https://coingape.com/south-korea-confirms-spot-bitcoin-etf-launch-in-2026/
