Catenaa, Friday, January 10, 2024- The Korea Exchange (KOSDAQ) is considering approving crypto spot exchange-traded funds (ETFs) in 2025, its chairman, Jeong Eun-bo, announced at the 2025 Securities and Derivatives Market Opening Ceremony.
The move aims to revitalize South Korea’s financial markets after political turmoil dampened investor confidence.
Jeong emphasized benchmarking global cases to introduce crypto ETFs, marking a strategic pivot toward innovation in capital markets.
Meanwhile, Financial Services Commission (FSC) Chairman Kim Byung-hwan outlined plans to institutionalize security token offerings (STOs) in 2025.
The long-awaited regulatory framework would enable traditional financial and tech firms to launch STO platforms, fulfilling a key campaign promise of President Yoon.
FSC appealed to lawmakers and market participants to collaborate in overcoming economic challenges and political instability, stating, all must work together to make 2025 the year when investors return.
South Korea’s capital markets suffered setbacks in 2024, with sluggish domestic growth and an export slowdown.
Both KOSDAQ and FSC expressed optimism that regulatory advancements in crypto ETFs and STOs could diversify investment opportunities and reinvigorate the market.
As lawmakers pause broader crypto legislation, these initiatives signal a cautious yet progressive stance toward blockchain-based financial products in South Korea.
