Catenaa, Saturday, March 08, 2025-South Korea regulators may move closer to approving Bitcoin exchange-traded funds (ETFs) if Japan gives the green light to similar investment products, according to a new report.
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have been closely monitoring Japan’s approach to Bitcoin ETFs, Maeil Kyungjae reported Tuesday. The Japanese Financial Services Agency (FSA) is reportedly considering reclassifying cryptocurrencies as investment tools and approving Bitcoin and altcoin ETFs.
“If Japan speeds up the introduction of Bitcoin ETFs, it will be interesting to see how the South Korean government responds,” the report stated.
The FSC has historically been cautious toward crypto-related financial products, citing concerns over market volatility and investor protection. Last month, FSC Vice Chairman Kim So-young reiterated that South Korea would “carefully review” Bitcoin ETF approvals, referencing Japan’s stance as a key factor.
Regulatory uncertainty in Seoul has been exacerbated by an ongoing impeachment case against President Yoon Seok-yeol. Lawmakers have paused all crypto legislation efforts until the crisis is resolved, leaving financial authorities to navigate crypto policy independently.
Despite political roadblocks, South Korea’s financial community has voiced concerns that delaying Bitcoin ETF approval could put the country at a disadvantage. The United States approved spot Bitcoin ETFs in early 2024, prompting calls for South Korea to take a more proactive stance.
Meanwhile, Japan is expected to implement broader crypto regulatory changes by mid-2025, with potential legislative approvals in 2026.
