South Korean authorities submit spot crypto ETF approval roadmap: report

South Korea's top financial authority has filed its roadmap to approve the local spot crypto exchange-traded funds on Thursday, according to local news reports.

According to Yonhap News Agency, the Financial Services Commission submitted its plans to the Presidential Committee on Policy Planning, which said it would prepare implementation measures for spot crypto ETFs in the second half of this year.

The FSC's roadmap supports the new President Lee Jae Myung's election promise to lift the domestic ban on crypto ETFs. The commission had previously banned these financial products from being traded or issued, citing risk to financial stability and its view on cryptocurrency as an unsuitable base asset.

The roadmap also reportedly included plans to fully prepare rules to lift the ban on the Korean won-based stablecoins in the latter half of 2025, which is another project on President Lee's crypto agenda. Lee, in a discussion last month, stated that the country needs to establish a won-based stablecoin market to prevent the outflow of domestic capital.

Crypto ETFs and KRW stablecoins approval is part of left-wing President Lee's broader campaign to help the local youth build their financial foundation.

Following Thursday's media reports, the FSC issued a statement on Friday clarifying that the reported details of its filings to the policy committee are not confirmed nor finalized.

Meanwhile, the FSC has already been making efforts to liberalize the traditional financial market to crypto, currently processing the phased approval for institutional investors to trade crypto.

Outside of crypto, the FSC plans to review a potential plan to extend the trading hours of Korea Exchange, the sole securities exchange operator in South Korea, from 6.5 hours to 12 hours.

South Korea houses one of the largest retail cryptocurrency markets in the world. At the end of last year, South Koreans held around 104 trillion won ($75.7 billion) worth of crypto, according to data from the FSC.

Story updated to include the FSC's latest statement in response to media reports