South Korea Plans Crypto ETFs in 2026

South Korea has confirmed plans to allow spot digital asset exchange-traded funds under its newly released 2026 Economic Growth Strategy.

The roadmap explicitly includes spot Bitcoin ETFs and other digital asset ETFs, a big win for the broader crypto space.

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.

Issuers will need government approval, minimum capital, full reserve backing, and guaranteed redemption rights.

The structure is designed to avoid failures like the 2022 Terra-Luna collapse that erased roughly $40 billion in value.

Rules for cross-border stablecoin transfers are also being drafted to support trade settlements and remittances.

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.

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