South Korea to Explore Crypto ETFs, Allow Companies to Launch Security Tokens in 2025
Date: 2025-01-03 Author: Oliver Abernathy Categories: IN WORLD
Korea Exchange Chairman Jeong Eun-bo said the exchange wants to “explore” the possibility of approving a crypto ETF in 2025. The country’s Financial Service (FSC) also wants to allow companies to launch security token offerings (STOs).
According to South Korean media outlet The Fact, Jeong spoke at the opening ceremony of the Securities and Derivatives Market in 2025, outlining the country’s ambition to explore crypto ETFs. In his speech, he cited the political crisis in South Korea that has led to financial difficulties after President Yoon Suk-yeol’s attempt to impose martial law failed. Traders and investors, tired of the instability, began selling their assets en masse, causing capital to flow out of the stock market.
Jeong then expressed his opinion that the country should explore new business sectors, starting with alternative assets such as crypto ETFs.
“We will look to overseas examples for new businesses such as crypto ETFs and look for new areas for capital investment,” he said. He also added that he intends to continue South Korea’s corporate value enhancement program, which helps investors analyze companies’ financial performance to increase their value.
Jeong hopes that exploring new business areas such as crypto ETFs will help bring back foreign and domestic investors who have fled the market.
For his part, FSC Chairman Kim Byung-hwan also spoke at the ceremony, expressing his desire to allow companies to launch STOs in 2025. South Korean companies have been waiting for years for approval to issue security tokens.
Kim explained that the agency intends to take steps to improve the initial public offering system and strengthen the listing and delisting procedures for companies that want to launch their security tokens. The agency wants to ensure that the prices of public offerings remain rational.
“We will institutionalize STOs, fragmented investment platforms, and fund platforms to diversify the issuance and distribution system of securities, which will facilitate the growth of corporate investment,” Kim said.
These statements indicate the South Korean exchange and the FSC’s desire to push for cryptocurrency regulation to legitimize the sector. As previously reported, the chairman of the South Korean exchange called on lawmakers to speed up the adoption of crypto regulations to keep up with other countries.
However, lawmakers have decided to put cryptocurrency-related issues on hold until the impeachment of President Yoon Suk-yeol is completed. At the time of writing, a Seoul court has issued an arrest warrant for Yoon after he failed to appear for questioning three times. However, the arrest was cancelled due to the blocking of the route to his house by security forces.
