2025: The Latest Developments in South Korea’s Cryptocurrency Market
In 2025, the focus of both retail investors and politicians in South Korea is on one thing: when will the country officially launch a legal cryptocurrency ETF? This article will delve into the market dynamics, political trends, and regulatory situation in South Korea to reveal the latest developments in this financial revolution.
South Korea Emerges as the World’s Second Largest Cryptocurrency Market
According to data, the trading volume of cryptocurrencies denominated in Korean won reached an astonishing $663 billion in 2025, second only to the USD market’s $832 billion globally. This data not only highlights the scale of the South Korean market, but also nearly matches the global USD cryptocurrency trading volume, reflecting South Korea’s key position in the global digital asset ecosystem.
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One-Third of Adults Hold Cryptocurrency, Surpassing US Stock Participation
Cryptocurrency usage in South Korea has surpassed traditional finance on all fronts. Data shows that over 16 million South Korean adults own cryptocurrency assets, accounting for approximately 32% of the adult population, which is double that of the United States. Of particular note is that the number of South Koreans holding cryptocurrency has surpassed the number of stockholders, demonstrating the strong appeal of cryptocurrency assets among the public.
This trend is also reflected in trading volume: local cryptocurrency exchanges in South Korea, such as Upbit, have trading volumes comparable to major stock exchanges, and even surpass them at times.
(Trading Cryptocurrency is Better Than Stocks, South Korea’s Cryptocurrency Trading Volume Approaches Stock Market)
Political Figures Ride the “Cryptocurrency Bandwagon”: Both Parties Support ETF Legalization
The presidential election in June 2025 made cryptocurrency a focal point in national politics. Both presidential candidates publicly supported the legalization of spot-type cryptocurrency ETFs, showing a rare bipartisan consensus. The eventual winner, President Lee Jae-myeong, promised to expedite the legalization process for ETFs to address the long-standing issues of policy ambiguity and regulatory delays.
(South Korean Presidential Candidates Promise to Legalize Bitcoin ETF if Elected, Creating a Youth-Friendly Investment Environment)
Retail Investors Lead the Way, Institutions Not Falling Behind: Dual Demand Boosts ETF Expectations
While the South Korean market has been dominated by retail investors in the past, institutional investors have also begun to enter the scene in recent years. Particularly with expectations of policy relaxation, large institutions such as corporations and retirement funds have shown increased interest in cryptocurrency ETFs. It is noteworthy that the elderly demographic has a much higher acceptance of ETFs compared to directly purchasing cryptocurrency assets, due to their preference for regulated, less volatile investment tools.
Current Regulations Stalling, ETF Still in the “Waiting Room”
South Korea’s Capital Markets Act currently does not recognize virtual assets as eligible targets for ETF issuance, making it impossible to legally introduce cryptocurrency ETFs. This has become a major obstacle to market development. However, since 2025, regulatory agencies and the National Assembly have begun to push for new law revisions and regulatory reviews, aiming to complete institutional establishment by the end of the year to give the green light to ETFs.
Cryptocurrency ETFs are a Key Step towards Financial Modernization in South Korea
South Korea currently accounts for approximately 35% of global cryptocurrency trading volume, demonstrating its significant market influence.
It is estimated that by the end of 2025, the number of cryptocurrency users in South Korea will approach 20 million.
Cryptocurrency ETFs are seen as essential tools to promote market stability, attract institutional funds, and achieve asset diversification.
Financial regulatory agencies and exchanges are gradually expressing support, paving the way for market openness.
Overview of South Korea’s 2025 Cryptocurrency Market
| Indicator | Data or Current Situation |
| — | — |
| Total Cryptocurrency Trading Volume in 2025 (in Korean won) | $663 billion |
| Global Ranking (based on fiat currency trading volume) | 2nd (after USD) |
| Percentage of Adult Population Holding Cryptocurrency | Approximately 32% (over 16 million people) |
| Political Support for Cryptocurrency ETFs | Strong bipartisan support |
| Legal Status of Cryptocurrency ETFs | Not yet legal, regulatory amendments in progress |
| Expected Launch Time for ETFs | End of 2025 (estimated) |
Risk Warning
Cryptocurrency investment carries a high level of risk, with prices subject to extreme volatility, and you may lose your entire principal. Please assess the risks carefully.