Key Takeaways
- All major South Korean presidential candidates support legalizing spot Bitcoin ETFs.
- Bitcoin ETFs remain banned, with 100% of trading volume coming from retail investors.
- Past promises to lift the ban have failed to result in regulatory action.
South Korea may be on the verge of legalizing spot Bitcoin ETFs, as all three top presidential contenders have expressed support for pro-Bitcoin policies ahead of the next election.
Current status of Bitcoin ETFs in South Korea
Currently, Bitcoin ETFs and institutional crypto investment remain banned in the country, with trading volume driven entirely by retail investors.
Ki Young Ju, CEO of onchain analytics firm CryptoQuant, noted on May 14:
All three major South Korean presidential candidates support #Bitcoin ETFs and institutional investment.
Promises from political leaders
Democratic Party leader Lee Jae-myung recently promised to lift the ETF ban and lower transaction fees, aiming to create a “safe investment environment” for young investors, according to The Korean Economic Daily.
Similar pledges were made by his party in the 2024 election cycle but have yet to result in legislative changes.
Expert opinions & caution
Despite the promises, regulatory experts remain cautious.
Anndy Lian, an intergovernmental blockchain adviser, told Cointelegraph:
They will take on similar stances as Hong Kong. Whether the ETFs can perform or not depends on various other factors.
Historical context & comparisons
The ruling People Power Party had also vowed to legalize Bitcoin ETFs before President Yoon’s impeachment but failed to follow through.
Hong Kong legalized Bitcoin and Ether ETFs on April 30, 2024, though early trading volume lagged behind U.S. counterparts.
South Korea may follow, but skepticism remains about how soon regulatory change will materialize.
