South Korea to finalize 100%‑reserve stablecoin rules and permit spot crypto ETFs

Beincrypto reports South Korea will finalize stablecoin regulations in the first quarter of 2026 and the government plans to approve spot crypto ETFs this year as part of its "2026 Economic Growth Strategy." The Financial Services Commission will complete the so-called "Digital Asset Phase 2" legislation within Q1 2026, establishing a regulatory framework that requires stablecoin issuers to obtain government authorization after meeting capital requirements, to hold reserve assets equal to at least 100% of issued tokens, and to guarantee users' redemption rights.

The framework aims to prevent collapses similar to the 2022 Terra‑Luna incident, which wiped out approximately $40 billion in market value, and the government will develop rules for cross‑border stablecoin transactions. The plan also confirms intentions to introduce spot digital asset ETFs this year, following spot Bitcoin launches in the United States in January 2024 and similar products in Hong Kong.

Until now, Korean rules have not recognized cryptocurrencies as eligible ETF underlying assets, effectively blocking domestic access; market observers expect approval to accelerate institutional participation, including potential investments from pension funds and corporate treasuries.

Key Topics

Crypto, South Korea, Financial Services Commission, Stablecoin Legislation, Spot Bitcoin Etfs, Deposit Tokens