Amid comprehensive regulatory reforms, transaction fees at leading crypto exchanges will also undergo evaluation by the Financial Services Commission (FSC).
South Korea’s primary financial authority is developing a comprehensive roadmap to facilitate the introduction of digital asset spot exchange-traded funds.
The Financial Services Commission disclosed this initiative during a policy briefing to the State Affairs Planning Committee, according to a June 19 report published by Herald Economy.
The proposal is scheduled to be unveiled by the FSC in the latter half of the year. The commission will assess the potential consequences of launching crypto-backed spot ETFs, taking into account risks to financial stability, investor vulnerability, and overall economic impact.
The agency also plans to develop the necessary infrastructure for listing and managing such ETFs, placing strong emphasis on protecting investors throughout the process.
This policy initiative aligns with campaign promises previously made by President Lee Jae-myung, who advocated authorizing Bitcoin-based ETFs and other investment products tied to digital assets.
Stablecoin Regulations and Exchange Fees Come Under Scrutiny
In addition to introducing ETFs, the Financial Services Commission (FSC) is actively advancing the second phase of digital asset legislation.
The upcoming phase will prioritize setting rules for asset listings, enhancing disclosure requirements, regulating business conduct, and intensifying actions against unfair practices in the digital asset market.
The initiative prioritizes aligning stablecoin regulations with global standards, while regulators work actively to protect users and enhance transparency across the market.
Of particular concern to South Korean authorities is the rising dominance of US dollar-denominated stablecoins within the local market. Lee Chang-yong, the governor of the Bank of Korea, recently warned that introducing won-pegged stablecoins might drive greater demand for the US dollar, thereby heightening macroeconomic vulnerabilities.
At the same time, the Financial Services Commission (FSC) is reportedly planning a comprehensive review of transaction fees that domestic cryptocurrency exchanges impose.
Initially, the Financial Services Commission will direct the review toward South Korea’s major cryptocurrency platforms, such as Upbit, Bithumb, and Coinone.
The review will focus on several critical aspects, including the structure of transaction fees on these platforms, the transparency of their disclosures, and how frequently they implement voluntary reductions in fees.
South Korea has launched new regulatory initiatives to balance technological progress with user protection as it reforms its cryptocurrency market framework.
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