KRX Readies for Crypto ETFs as SK Regulators Weigh Approval.

Korea Exchange readies infrastructure to list crypto ETFs and derivatives amid regulatory push to recognize digital assets

  • Korea Exchange says it is ready to list and trade new products such as crypto ETFs and derivatives.
  • Jeong Eun-bo announced operational preparedness on the first trading day of the new year and signaled support for crypto-linked products.
  • Regulators have not yet approved crypto ETFs because crypto assets are not eligible underlying assets under current rules.
  • The Financial Services Commission is reviewing reforms through a dedicated crypto committee to consider recognizing digital assets within the Capital Markets Act.
  • Industry and political support has grown for spot Bitcoin and Ether ETFs; Bithumb also reported about $200 million in dormant crypto assets across inactive accounts.

Korea Exchange announced plans to expand new investment products, including crypto exchange-traded funds and derivatives, at the first trading day ceremony of the new year in South Korea. Jeong Eun-bo said the exchange is operationally prepared to support crypto ETFs and linked the effort to a broader plan to modernize markets and move beyond the “Korea discount” in domestic stock valuations, as he signaled.

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The chairman also pointed to initiatives such as a gradual shift toward 24-hour trading and steps to boost digital finance readiness. The article noted that Bitcoin often trades at a premium on local exchanges compared with overseas platforms, a contrast to the domestic equity valuation gap.

Regulators continue to weigh the legal status of crypto-based investment products. Under current rules, crypto assets are not classified as eligible underlying assets for securities, which effectively blocks crypto ETFs. The Financial Services Commission said it is studying reforms through a dedicated crypto committee, including whether digital assets could be recognized under the Capital Markets Act.

By publicly stating operational readiness, KRX is positioning market infrastructure to move quickly once regulatory barriers are addressed. The exchange’s message suggests that infrastructure may no longer be the main constraint if policy changes follow.

Support for domestic crypto ETFs has grown across the industry and politics. The head of KOFIA said the industry will push to list Bitcoin and Ether ETFs to meet investor demand, and presidential front-runner Lee Jae-myung pledged to approve spot crypto ETFs if elected; he went on to win the election. A related clip is available on YouTube. Separately, Bithumb flagged about $200 million in dormant crypto assets across 2.6 million inactive accounts.

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