The South Korean government announced on January 9 that the “Digital Assets Second Stage Act” will be passed by the end of this year. The law is a part of the country’s 2026 Economic Growth Strategy and aims to align South Korea’s crypto regulation with global standards.
The new law will regulate stablecoins and permit the launch of digital asset spot exchange-traded funds (ETFs). The Financial Services Commission will oversee the implementation of this rule.
According to the government plan, stablecoin issuers will have to be licensed and keep 100% reserves. The regulations will also specify the rights to redemption and the management of reserves. Concurrently, the government is developing directives for cross-border transactions involving stablecoins to ensure compliance and mitigate financial risk.
Your completely free resource hub designed to boost your knowledge of cryptocurrencies
South Korea Eyes Stronger Investor Confidence With Spot Crypto ETFs
The approval of spot crypto ETFs is predicted to make it easier for investors to access digital assets in a regulated environment thus, making South Korea comparable to markets that have similar products. Government officials say that the changes are aimed at promoting market confidence and at the same time, keeping the digital asset sector’s secure growth trend.
The response from the industry has been cautious yet overall positive. While no major global cryptocurrencies’ leaders have yet made donations to the public, the sentiment throughout the market appears to be positive. The potential for rule clarity and predictability is seen by many as a reason that might enhance investor trust and hence, the further expansion across the digital asset realm.
