South Korea To Explore Crypto ETFs And Enable Security Token Issuance In 2025

South Korea plans to explore cryptocurrency exchange-traded funds (ETFs) and allow companies to issue security tokens in 2025. 

According to local media reports, the South Korean government is reportedly considering the introduction of cryptocurrency ETFs. 

In addition to crypto ETFs, South Korea is preparing to enable companies to issue security tokens starting in 2025. 

Related: Crypto Trading In South Korea Surpasses Stock Market With $18 Billion In 24 Hour 

“Our Market Showed Considerably Sluggishness Compared To Major Countries”

Korea Exchange Chairman Eun-bo Jeong announced that he wants to explore new businesses such as virtual currency ETFs.

Pointing out the difficulties South Korea faced in 2024, Chairman Chung said, “Last year, our capital market went through considerable difficulties.” He added, “While the growth potential of our companies was weakened due to the contraction of the domestic economy and slowdown in exports, our market showed considerably sluggishness compared to major countries due to global conflicts and domestic political situations.” 

While the country aims to create new growth engine for the capital market, Chung said that the country will continue to “benchmark overseas cases for new businesses such as virtual currency ETFs and explore new areas in the capital market.”

“There is great uncertainty surrounding the Korean economy, but if we pool our wisdom with the National Assembly, government, exchange, and investment industry, our capital market will be able to leap forward as a more advanced market,” Chung stated.

Financial Services Commission Chairman Kim Byung-hwan said, “We will institutionalize STO (tokenized securities), fragmented investment platforms, and unlisted stock platforms to diversify the securities issuance and distribution system and promote the introduction of corporate growth collective investment vehicles (BDCs).” 

He added, “We will reorganize the entire system so that comprehensive financial investment businesses can be faithful to their original role of providing corporate finance and venture capital.”

BULLISH: South Korea’s Crypto Adoption Is Booming!

• 45% of economically active citizens own crypto (15.6M people).
• $69B held in digital assets; avg portfolio size: $4,400.
• 100K new investors join the market every month.
• Top 5 exchanges trade $10B daily,… pic.twitter.com/zvySzWuawh

— Cointelegraph (@Cointelegraph) December 25, 2024

South Korea Doesn’t Want To Be Vague About Crypto Anymore! Stock Exchange Chief Calls For Institutionalization

On 15 December 2024, in an interview with local media, Jeong Eun-bo, the Chairman of South Korea Stock Exchange, urgently called for institutionalization of the crypto market.

“We need to quickly institutionalize the virtual currency market and work to create new added value,” the Chairman said.

His remarks come amid concerns that the nation might lag behind other countries that have already embraced and regulated digital assets.

Retail crypto trading volumes in South Korea soared to $18 billion within 24 hours on 2 December 2024, surpassing the country’s stock market by 22%, according to a report from 10x Research.

“The virtual currency market has now grown in size and influence to the point where it cannot be ignored by traditional markets. Our country should also quickly make efforts to include virtual currency in institutional finance,” said Eun-bo.

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