The government said that its decision is inspired by the active spot Bitcoin ETF trading in the United States and Hong Kong.
Until now, local regulations did not recognize cryptocurrencies as eligible ETF underlying assets, blocking domestic access to such products.
Regulators plan to move ahead alongside a broader change in digital asset laws.
Phase Two Legislation Moves up the Timeline
The Financial Services Commission will accelerate its so-called Digital Asset Phase 2 legislation.
The framework is expected to be finalized by early 2026. The major focus is on stablecoin regulation.
South Korea said in its 2026 Economic Growth Strategy that it plans to allow spot digital asset ETFs, including spot Bitcoin ETFs, this year, while the Financial Services Commission (FSC) accelerates phase-two digital asset legislation. The government cited active spot Bitcoin…
It is also important to note that a spot ETF approval would reopen the door for pension funds, asset managers, and corporate treasuries to gain regulated exposure to crypto assets.
Blockchain Enters Public Finance
The South Korean government plans to integrate blockchain directly into fiscal operations. By 2030, up to 25% of the national treasury is expected to be distributed through digital assets.
A pilot program using deposit tokens will begin in the first half of 2026, starting with subsidies for electric vehicle charging infrastructure.
Deposit tokens are backed by commercial bank deposits and designed to function as restricted-use vouchers.
The system aims to shorten settlement times, reduce fraud, and cut administrative costs. To support these major changes, South Korea plans to amend the Bank of Korea Act and the National Treasury Act by the end of 2026.
These changes will establish a legal basis for blockchain-based payment and settlement systems.
Also, the government is reviewing wallet infrastructure, point-of-sale integration, and links to the national fiscal information system.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.