South Korea Set to Approve Spot Bitcoin ETFs and Digital Funds by 2026

South Korea plans to approve spot Bitcoin ETFs by 2026, allowing regulated crypto investment via stock exchanges. New laws for stablecoins and digital treasury funds are also in development.

South Korea has announced plans to approve spot Bitcoin exchange-traded funds (ETFs) as part of its 2026 Economic Growth Strategy. The government aims to allow local investors to access Bitcoin through regulated stock exchanges, marking a significant shift from previous policies. The Financial Services Commission will lead the process, reviewing and amending the Capital Markets Act to classify digital assets as eligible ETF assets. The Korea Exchange has indicated readiness to support these products once the legal framework is established. The government is also preparing new regulations for stablecoins, including licensing requirements, capital standards, 100% reserve backing, and clear redemption rights, as well as rules for cross-border transactions. Additionally, South Korea plans to digitize 25% of its national treasury funds by 2030 using deposit tokens for payments and settlements. These initiatives follow developments in other markets such as the United States and Hong Kong, and the legislative process is underway to enable the launch of spot Bitcoin ETFs before the end of 2026.