South Korea (KR) is growing closer to a decision on Bitcoin (BTC) exchange-traded funds (ETFs)

In its report, MK says the South Korean government is looking to Japan as an example, as the island nation has been skeptical of digital assets in the past but may be changing its tone.

South Korea is edging closer to a decision on Bitcoin (BTC) exchange-traded funds (ETFs), according to a report from local publication Maeil Business Newspaper (MK).

The report claims that the country’s financial regulator, the Financial Supervisory Service, has examined the Japan Financial Services Agency’s legislative trend toward digital assets and shared it with related institutions.

Earlier this month, Nikkei reported that Japan’s financial regulator was considering positioning crypto as financial products alongside securities, which could lead to a lifting of the ban on crypto ETFs in the country. The discussion in Japan is expected to last through the first half of 2025 before a legislative plan is drafted and submitted to the National Assembly in 2026.

At a press conference after the virtual asset committee meeting on Feb. 12, vice chairman Kim So-young said that the regulator would carefully review (spot Bitcoin ETFs), and it is similar in the broader context.

“There are countries that have not yet introduced it. There are England and Japan,” he said.

The report continues that South Korea, where over 30% of citizens invest in crypto assets, has seen political struggles after former president Yoon Suk Yeol was arrested on Jan. 15 following an attempt to impose martial law in the country.

Since then, the government has continued its crypto regulation efforts. On Feb. 13, the Financial Services Commission announced that charities and universities would be able to sell crypto donations starting in the second half of 2025.

The government has continued with enforcement actions as well. On Jan. 16, Upbit, one of the largest cryptocurrency exchanges in the country, received a suspension notice for alleged KCY violations. Upbit reportedly filed a lawsuit against South Korea’s Financial Intelligence Unit to overturn the business sanctions.