The crypto ETF situation in South Korea is basically dead in the water.

According to local media outlet Naver, the spot crypto ETF trading that was originally planned to launch within the year is now pretty much off the table. The issue is stuck at the amendment of the Capital Markets Act—four related amendment bills are still just sitting there, and no one is pushing them forward.

Why did things suddenly stall? To put it simply, the government got busy with other things. The Financial Services Commission and the Financial Supervisory Service are undergoing institutional restructuring, so all their manpower and resources are tied up there. On top of that, the government is focusing on policies to boost the traditional stock market, so crypto assets have naturally been pushed to the back burner. With the legislative priority lowered, things are just dragging on.

It’s pretty ironic. Look at the US, Canada, Australia, and even several European countries—spot Bitcoin ETFs have long been approved, and Hong Kong is actively moving forward as well. South Korea’s crypto market has always been hot and widespread, but when it comes to institutional innovation, it’s fallen behind.

For the market, it’s definitely a disappointment in the short term. The institutional funds that had hoped to enter through compliant ETF products are now either on the sidelines or directly seeking overseas channels. Once this trend of capital outflow starts, it’s definitely not good for the long-term development of the local ecosystem. If the institutionalization process gets stuck, it’ll be even harder to catch up later.