South Korea to Launch Spot Bitcoin ETFs in 2026

The South Korean government has announced plans to adopt digital assets. On January 9, 2026, the Ministry of Economy and Finance unveiled its 2026 Economic Growth Strategy. The plan includes launching spot exchange-traded funds (ETFs) for major cryptocurrencies like Bitcoin. 

Local news outlets report that officials pointed to the successful trading of spot Bitcoin ETFs in the United States and Hong Kong as key examples. The Financial Services Commission will expedite the implementation of the second stage of digital asset laws, building upon the 2024 Virtual Asset User Protection Act.

Key Regulatory Advances

South Korea has announced new regulations for stablecoins aimed at streamlining the process. These regulations will require issuers to obtain licenses and maintain reserves in secure assets. This will enable withdrawals and reduce the risk of failure. Additionally, the country’s exchange has stated that it is ready to list these ETFs.

Moreover, the government plans to adopt blockchain for payments and permit digital currencies in treasury operations, aiming to allocate part of the national budget to it by 2030. The Financial Services Commission is reviewing these changes in the context of existing regulations.

The country is looking to global examples such as the U.S., which approved Bitcoin ETFs in 2024, attracting significant institutional investment. South Korea’s latest decision marks a shift from its prior stance. This highlights that cryptocurrencies have the potential to boost the economy, with analysts predicting increased investment as Bitcoin prices rise.

South Korea Moves to Seize BTC

In a separate development, the country’s Supreme Court ruled that Bitcoin on crypto exchanges such as Upbit and Bithumb can be seized under the Criminal Procedure Act. The decision stems from a 2020 money laundering investigation. Prosecutors seized approximately 55.6 BTC, valued at over $414,000, from an individual’s exchange account. 

The individual challenged the seizure, arguing that Bitcoin’s lack of physical form excluded it from the provisions of Article 106. The court rejected his appeal, upholding lower court decisions that affirmed the seizure’s legality. The justices ruled that Bitcoin is an electronic token with independent value, allowing users to retain control via private keys. 

The decision builds on a 2018 precedent, enhancing authorities’ powers in crypto-related crimes and supporting anti-money laundering efforts in South Korea, where there are over 16 million cryptocurrency accounts as of early 2025. This dual approach balances innovation with oversight, and future legislation may build on this precedent.

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