South Korea wants to revive the crypto market

South Korea is moving forward to revive the cryptocurrency market, offering a roadmap for funds (ETFs) traded on exchanges and a stubcoin plan. In major developments, the country intends to move away from past crypto policies and enter a new era.

South Korea is planning to bring Spot Crypto ETFs and Stablecoin to the heart of the financial system and publish proposals for its effectiveness this week. The proposal, submitted by the country’s top regulator, Financial Services Commission (FSC), confirms that by the end of this year the government has detailed plans to regulate crypto investment products to the market. It also outlines the plan to introduce spot crypto exchange sales funds to investors in Asian countries.

South Korea is hoping to revive the crypto market

The FSC has presented a roadmap to the Presidential Commission on Policy Planning, including the framework of the legal and regulated framework of cryptographic ETFs. The move represents a change in the country, a shift from a cautious attitude to potential adoption of digital assets. Under the roadmap, the FSC is expected to prepare the legal and technical foundations needed to realize these proposals.

Additionally, the South Korean FSC is expected to oversee the development of infrastructure that reduces custody, operations, pricing, and fund management. Agents are also charged with setting clear standards to protect investors. The decision to support Crypto ETFS comes just a few months after President Lee Jae-Myung was elected.

During his campaign, Lee promised to legalize crypto ETFs and improve safeguards to investors to protect them in the market. His pro-position identifies a shift from the previous administration’s policy that banned crypto ETFs over concerns about risks in the market sector.

The move is in line with the goal of working together in South Korea’s global financial trends, given that major markets such as the US and Europe are already on track in the spot ETF market. The country also wants to continue attracting both retail and institutional investors, making the country one of the few global hubs for digital assets and other crypto-related financial products.

FSC promotes Stablecoin rules and market surveillance

In addition to offering Spot ETFs, the Roadmap also discussed current trading fee reductions of around 0.05%. President Lee intends to lower the fees, which has been reduced to around 0.015%. The focus is to ensure that crypto trading remains affordable for the population, especially for young traders who are making progress in the industry.

Outside of the ETF, the roadmap also includes the Stablecoins legal framework based on South Korea’s WON. These digital assets, pinned in Fiat currency, are used for payments and remittances while maintaining capital domestically. According to the roadmap, the move helped reduce reliance on stubcoins like USDT and USDC, and was created overseas and allowed local businesses to issue stubcoins. Meanwhile, the governor of the Bank of Korea said the central bank should develop stubcoin.

The roadmap doesn’t focus solely on new product launches. The FSC also includes a more rigorous surveillance push. The committee proposes stricter penalties for illegal market activities, including lifetime bans and fines for bad actors. The committee also said exchanges face higher disclosure standards and need to post transparent trading fees and listing rules. This sector shows that South Korea is focusing on protecting investors without thwarting innovation.