In a significant policy shift, South Korea has announced plans to introduce spot Bitcoin and Ethereum exchange-traded funds (ETFs) as part of its 2026 economic growth strategy. This move marks a reversal from the Financial Services Commission's (FSC) earlier stance, which in January 2024 warned that offering access to overseas-listed spot Bitcoin ETFs could violate local regulations. The government aims to complete "Phase 2" digital-asset legislation by Q1 2026, which will also include new rules for stablecoins, requiring issuer approvals, capital checks, and reserve safeguards.
Analysts are watching whether this development could reignite the "kimchi premium," the historical price gap between Korean exchanges and global markets. As of January 13, 2026, the premium was a modest 0.61%, with Bitcoin trading at ₩134.03M on Upbit versus ₩133.22M on Binance. However, challenges remain, including the need for clearer rules for institutional participation, a reliable benchmark index, and a developed derivatives market for risk hedging.
In contrast, Hong Kong has signaled a more cautious regulatory approach, indicating it has no current plans to adopt or support gold-backed stablecoins. While fostering its Web3 ecosystem, Hong Kong authorities are prioritizing a strict regulatory framework, currently focused on fiat-backed stablecoins and explicitly excluding commodity-backed variants like gold. This decision may impact firms hoping to launch such tokens in the region.
Simultaneously, South Korea's pioneering Security Token Offering (STO) platform faces potential closure due to unclear regulatory pathways and market pressures, highlighting the volatile nature of crypto ventures in evolving regulatory landscapes. These developments in Asia underscore the region's mixed but pivotal role in shaping the future of digital asset regulation and adoption.
