FSC to Prepare Plan for Introduction of Virtual Asset ETFs in Second Half of Year

The government has decided to establish a plan in the second half of the year to introduce spot exchange-traded funds (ETFs) for virtual assets, a campaign pledge of President Lee Jaemyung. The regulatory framework for stablecoins and other related areas will also be completed.

According to the industry, the Financial Services Commission reported this plan in relation to the implementation of the new government's pledges during a policy briefing to the National Policy Planning Committee held at the Government Sejong Complex on the 19th. The report included a plan to introduce spot ETFs for virtual assets in the second half of the year, taking into account risks arising from the linkage between financial and virtual asset markets, the impact on the real economy, and investor benefits.

Previously, President Lee had pledged in his policy platform during the presidential campaign to allow the issuance, listing, and trading of spot ETFs based on underlying assets such as Bitcoin.

The Financial Services Commission will also pursue a second phase of legislation focused on establishing regulations for stablecoins to ensure global consistency and user protection. This will cover the listing and disclosure of virtual assets, business conduct of operators, and investigation and punishment of unfair practices. The government also plans to encourage voluntary fee reductions by virtual asset exchanges through comparative disclosures.

In addition, the so-called "one-strike-out" system will be implemented for those engaged in unfair trading practices such as stock price manipulation. The government plans to recover unjust gains by actively imposing measures such as freezing accounts under suspicion and levying fines up to twice the amount of the maximum unjust profits.

Furthermore, to prevent the use of undisclosed information, an amendment to the Capital Markets Act will make it mandatory for listed companies to claim the return of short-swing profits from insiders. In the second half of the year, companies with a high likelihood of unfair trading such as stock price manipulation, particularly those with poor financial health, will be swiftly delisted by strengthening delisting criteria such as market capitalization, sales, and external audits.