South Korea incorporates Bitcoin into national policy, intensifying Asia's crypto financial competition

The South Korean government officially released its 2026 economic growth strategy on January 9, explicitly proposing to promote the approval process for Bitcoin spot ETFs. This not only marks a shift from passive followership to active leadership for Korea but also reflects a fundamental change in the attitude of mainstream global finance towards crypto assets. Meanwhile, Korea is also advancing upgrades in stablecoin regulation and digital national treasury construction, indicating a comprehensive restructuring of the crypto financial ecosystem.

The Three Pillars of Korea’s Policy Breakthrough

Korea’s newly released economic growth strategy covers several key areas of crypto finance:

From “Follower” to “Leader”: Strategic Shift

The deeper logic behind Korea’s move warrants attention. According to news reports, Korean regulators are focusing on studying the operation of Bitcoin spot ETFs in the US and Hong Kong. The experiences of these markets in liquidity, investor participation, and compliance frameworks will serve as important references for Korea in formulating its own rules.

The US spot ETF market has already provided clear answers. Recent data shows that the daily net inflow into US Bitcoin spot ETFs reached $697 million, with BlackRock’s IBIT alone absorbing $372 million. The total net inflow has exceeded $62.7 billion historically. These figures demonstrate that compliant Bitcoin investment channels can attract substantial institutional funds.

Why is Korea acting now?

The global crypto asset market has undergone structural changes. Against the backdrop of the US approving Bitcoin spot ETFs and the Trump administration easing crypto investment regulations for pensions, traditional financial institutions’ attitudes towards crypto assets have shifted from “wait-and-see” to “participate.” If Korea misses this window, it may lose ground in the Asian digital finance competition.

According to news reports, Korea previously restricted digital assets from being included in official ETF assets, with related products facing strict limitations. This situation is changing, meaning Korean investors can finally indirectly hold Bitcoin through regulated funds instead of being forced to choose riskier direct trading methods.

Feasibility and Timeline of Policy Implementation

Korea’s stock exchanges have stated that their trading and settlement systems are technically capable of supporting such products. This is a significant signal—technical barriers are not the issue; institutional design is key. According to reports, if legislation proceeds smoothly, Bitcoin spot ETFs could be officially launched by the end of 2026.

More importantly, Korea’s reforms are not limited to Bitcoin. The second phase of stablecoin legislation requires stablecoins to be backed by real assets such as bank deposits or government bonds, reflecting Korea’s firm stance on compliance and security. The plan to digitize 25% of treasury funds by 2030 also indicates Korea’s long-term thinking about the future of digital finance.

Potential Market Ripple Effects

Impact on Bitcoin

Current data shows Bitcoin price around $91,010.96, with a 7-day increase of 2.41%. The introduction of Korea’s policy essentially reaffirms Bitcoin’s status as a “digital asset.” Every major economy launching a Bitcoin spot ETF means a new, large institutional fund pool is opening.

Impact on the Asian crypto market

This is not just a policy adjustment by Korea but a reshuffling of the Asian crypto financial landscape. Hong Kong already has a Bitcoin spot ETF, and Singapore, Japan, and other regions are also promoting related products. Korea’s participation will further solidify Asia’s position as a key hub for global crypto finance.

According to relevant information, a core feature of the current market is “K-shaped divergence”—leading assets (Bitcoin, Ethereum) attract large institutional funds, while mid- and small-cap coins face liquidity exhaustion. Korea’s policy rollout will likely strengthen this divergence in the short term, as support is focused on core assets like Bitcoin rather than smaller tokens.

Summary

Korea incorporating Bitcoin into national policy reflects not just a unilateral decision but a profound shift in the global financial system’s understanding of crypto assets. The question has evolved from “whether to participate” to “how to participate.”

Key points:

• Korea’s official policy promoting Bitcoin spot ETFs signals a new phase in Asia’s crypto financial competition
• The policy encompasses not only Bitcoin ETFs but also new stablecoin regulations and digital treasury construction, representing a comprehensive upgrade
• The success of US ETFs has proven that compliant products can attract substantial institutional funds; Korea’s policy is expected to replicate this success
• It is anticipated that Korea’s Bitcoin spot ETF will be officially launched before the end of 2026, further accelerating the mainstream adoption of crypto assets globally

For investors: Policy support, technological maturity, and institutional participation—these three conditions are simultaneously emerging worldwide, establishing a long-term trend.