South Korea's Major Regulatory Moves in 2026: Stablecoin Legislation + Spot ETF, Breaking the Long-standing Void in the Crypto Market

The Korean government has been actively taking steps in digital asset regulation. According to the latest news, the Korean government plans to establish the “Digital Asset Second Phase Legislation” in 2026, creating a regulatory framework for stablecoins, while also launching a digital asset spot ETF. These two initiatives will be implemented simultaneously, marking Korea’s shift from passive response to proactive regulation.

Initial Outline of Stablecoin Regulatory Framework

In the “2026 Economic Growth Strategy” released by the Korean government on January 5, the direction for stablecoin regulation was clarified. The Financial Committee and the Ministry of Economy and Finance will jointly promote this effort, with specific regulatory requirements including:

The core logic of this framework is risk management. The requirement for over 100% reserves means stablecoin issuers must hold assets equal to or greater than the issued amount, which helps prevent “aircoin” issues to some extent and enhances the credibility of stablecoins.

Spot ETF: Truly Breaking into the Market

Compared to stablecoin regulation, the introduction of a spot ETF is perhaps more noteworthy. According to the latest news, previously in Korea, digital assets like Bitcoin could not be traded as spot ETFs because they were not recognized as underlying assets for ETFs. This meant Korea’s market lacked an important investment tool for a long time.

Markets like the US and Hong Kong have already achieved active trading of Bitcoin spot ETFs. Korea’s move aims to fill this gap. The significance of spot ETFs for the market includes:

• Lowering participation barriers for ordinary investors (no need to hold coins directly)
• Providing institutional investors with standardized trading channels
• Increasing market liquidity and trading depth
• Enhancing market regulation and maturity

Greater Ambitions: Digital Currency Treasury Plan

The policy documents also reveal a longer-term plan: by 2030, the government expects to allocate a quarter of national treasury funds in the form of digital currencies (the so-called “deposit tokens”). This indicates that Korea is not only regulating crypto assets but also exploring the application of digital assets within the national financial system.

To support this plan, Korea intends to establish a legal basis for blockchain-based payment settlement within the year and promote electronic wallets for payments such as business operation fees. This demonstrates Korea’s shift from “regulating digital assets” to “applying digital assets.”

Market Context and Global Benchmarking

From a global perspective, Korea’s actions are not isolated. Major financial centers like the US and Hong Kong have already launched Bitcoin spot ETFs in 2024, achieving active trading. Currently, Bitcoin’s price is around $90,826, with a market share of 58.40%, indicating growing market recognition of Bitcoin.

Korea’s policy synchronization reflects a trend: major economies are moving from “whether to allow” to “how to regulate.” The stablecoin regulatory framework and the introduction of spot ETFs are concrete manifestations of this shift.

Summary

Korea’s two policy actions in 2026—the stablecoin legislation and the spot ETF—mark an upgrade in the country’s attitude toward digital assets. Moving from passive regulation to proactive regulation, from banning trading to designing systems, Korea is building a relatively complete digital asset ecosystem. The 100% reserve requirement for stablecoins ensures risk control, the introduction of spot ETFs breaks a long-standing market gap, and the national treasury digital currency plan reflects deeper strategic intent. These measures are expected to enhance the regulatory standards of Korea’s digital asset market in the short term and attract more institutional funds in the long term, further promoting market maturity.