South Korea must act swiftly to approve cryptocurrency exchange-traded funds (ETFs) or risk falling behind in the rapidly evolving global financial markets, said Jung Eun-bo, chairman of the Korea Exchange (KRX), in a recent interview. Highlighting South Korea's position as the third-largest real cryptocurrency trading nation, Jung stressed that the absence of crypto ETFs could leave the country trailing behind other markets that are embracing this shift.

Jung pointed to the United States as an example, where both futures and spot Bitcoin ETFs are readily available and actively traded. As of February 2025, the U.S. market offers a total of 20 cryptocurrency exchange-traded products, covering Bitcoin, Ethereum, and other digital assets. This includes 12 spot Bitcoin ETFs, 8 Bitcoin strategy ETFs, and 9 spot Ethereum ETFs. Moreover, applications for ETFs targeting other cryptocurrencies like Solana, XRP, and even meme coins such as Dogecoin have been filed, reflecting the growing diversity of the crypto ETF landscape.

According to Jung, introducing crypto ETFs in South Korea would open fresh opportunities for the country’s financial sector and provide a safer, regulated way for investors to access digital assets. He emphasized that cryptocurrency represents a sector capable of generating new value in finance and modernizing the nation's financial systems.

Jung also warned that excessive regulations could stifle innovation in the market, urging policymakers to find a balance that fosters growth while protecting investors. Additionally, he advocated for easing restrictions on pension fund investments in equities, arguing that strict limits on high-risk assets could negatively impact long-term returns.

South Korea’s financial sector faces mounting challenges, including a shrinking investor base and struggling companies reliant on borrowed funds. Jung believes that exploring emerging markets like cryptocurrency ETFs could reinvigorate the industry. He reiterated the urgency of this move during the Securities and Derivatives Market Opening Ceremony 2025, where he outlined his vision for revitalizing the nation’s financial markets.

This push for crypto ETFs comes amid ongoing discussions in South Korea about their potential approval. While local regulators hinted at the possibility of spot Bitcoin ETFs earlier in the year, a concrete timeline has not been established. Jung’s remarks underscore the importance of seizing this opportunity to ensure South Korea remains competitive in the global financial arena.