South Korea, the world’s third-largest crypto trading hub, faces pressure to launch cryptocurrency ETFs to stay globally competitive.
Korea Exchange Chairman Jung Eun-bo warns delays in crypto ETFs could disadvantage the nation’s financial market against the US and Europe.
Financial leaders, including KOFIA Chairman Seo Yoo-seok, highlight strong investor demand across age groups, urging swift regulatory action.
South Korea’s financial sector faces growing pressure to adopt cryptocurrency exchange-traded funds (ETFs) to stay competitive globally. Jung Eun-bo, chairman of the Korea Exchange, has for swift action, stressing that delaying the launch of crypto ETFs could put the nation’s financial markets at a disadvantage, a major shift from the nation’s on crypto ETFs.
South Korea ranks as the world’s third-largest cryptocurrency trading hub. Cryptocurrency holds the potential to create new financial value. Jung emphasized the need to align with international markets, citing the United States, where futures and spot
“Korea is the third-largest real cryptocurrency trading country in the world. Cryptocurrency represents a sector capable of generating new value in the financial industry. The US has both futures and spot ETFs available and actively traded. We must not delay the introduction of cryptocurrency ETF trading,” Jung said in a recent interview in Seoul.
Jung’s push comes amid broader financial concerns, including a declining investor base and structural inefficiencies in South Korea’s stock market. He believes introducing crypto ETFs would not only diversify investment opportunities but also help address ongoing market issues such as corporate splits, inefficient regulations, and underperforming firms.
South Korea Risks Falling Behind without Reform
The global cryptocurrency ETF market has expanded rapidly, with the United States playing a key role. The Securities and Exchange Commission () approved bitcoin futures ETFs in 2021 and spot bitcoin ETFs in January 2024. Major financial firms such as BlackRock and Fidelity have entered the market, reinforcing confidence in digital assets.
Canada and major European economies, including Germany and Switzerland, have embraced crypto ETFs. South Korea, despite its active crypto trading sector, has yet to introduce such investment products. A lack of offerings has raised concerns about falling behind in financial innovation. Jung has stressed the need to align with global standards to remain competitive.
He also urged a reassessment of pension fund regulations, arguing that strict limits on high-risk assets could restrict long-term gains. Easing investment restrictions could foster a more dynamic market, benefiting both retail and institutional investors.
Regulators Face Mounting Pressure to Act
Jung is not the only one advocating for change. During a press event on February 5, Korea Financial Investment Association (KOFIA) Chairman Seo Yoo-seok reinforced the call for launching Bitcoin and Ethereum ETFs in South Korea. He pointed out that while younger generations are often associated with digital assets, older investors — particularly those over 50 — are also interested and hold significant capital.
“Everyone thinks of virtual assets as an investment target for the MZ generation (Millennials + Generation Z), but people in their 50s and 60s also have a lot of interest in and demand for virtual assets,” Seo stated.
Seo also pointed to recent developments in the United States, citing ’s favorable stance toward Bitcoin and its potential as a national strategic asset. He suggested that such global shifts could pressure South Korea into reconsidering its cautious approach to cryptocurrency ETFs.