South Korea Takes Cautious Steps Toward Bitcoin ETFs

South Korea’s ongoing deliberations over Bitcoin exchange-traded funds (ETFs) and the renewed movement of Bitcoin from Mt. Gox-linked wallets highlight the evolving regulatory and market dynamics within the cryptocurrency sector. While South Korean authorities are closely monitoring Japan’s stance on crypto ETFs as they weigh potential approval, the defunct exchange Mt. Gox has transferred 12,000 BTC amid a week of market volatility. 

South Korea Moves Closer to Decision on Bitcoin ETFs Amid Changing Global Stance on Crypto Regulation

South Korea is edging closer to making a decision on the approval of Bitcoin exchange-traded funds (ETFs), with the nation’s regulators closely monitoring developments in Japan. According to a report from Maeil Business Newspaper (MK), South Korean authorities are studying Japan’s evolving stance on digital assets as they deliberate on the potential introduction of Bitcoin ETFs in the country.

The Maeil Business Newspaper reports that South Korea’s financial regulator, the Financial Supervisory Service (FSS), has been analyzing Japan’s recent legislative trajectory concerning digital assets. This includes reviewing policy trends from Japan’s Financial Services Agency (FSA) and sharing insights with relevant institutions in South Korea.

Japan has traditionally maintained a conservative approach toward cryptocurrency regulations. However, recent discussions suggest a potential shift, with the FSA considering positioning cryptocurrencies as financial products alongside securities. This move could pave the way for the approval of crypto ETFs in Japan, a prospect that South Korea is observing with keen interest.

On Feb. 10, Japanese publication Nikkei reported that Japan’s financial regulators might lift the ban on crypto ETFs, allowing them to be traded similarly to traditional financial instruments. The discussions in Japan are expected to continue through the first half of 2025 before a concrete legislative plan is proposed to the National Assembly in 2026.

While South Korea has yet to make a definitive move on Bitcoin ETFs, top financial officials acknowledge the growing global trend toward these investment vehicles. At a recent virtual asset committee meeting, Kim So-young, vice chairman of South Korea’s Financial Services Commission (FSC), reiterated the country’s cautious approach.

“I have continued to say that I would carefully review [spot Bitcoin ETFs], and it is similar in the broader context. There are countries that have not yet introduced it. There are England and Japan,” Kim said at a press conference following the meeting.

The comments shed light on the regulatory balancing act South Korea faces. On the one hand, the country recognizes the potential benefits of regulated Bitcoin ETFs, such as providing safer investment options for retail and institutional investors. On the other hand, authorities remain wary of the risks associated with cryptocurrency market volatility and potential financial crime.

The push for regulatory clarity in South Korea comes at a time of political turmoil. The country’s crypto regulatory landscape has been evolving rapidly following the dramatic arrest of former President Yoon Suk Yeol on Jan. 15. Yoon was detained after allegedly attempting to impose martial law in the country, an event that has significantly reshaped the nation’s political scene.

Despite the political turbulence, South Korea’s financial regulators have maintained their focus on strengthening crypto oversight. On Feb. 13, the Financial Services Commission announced new guidelines permitting universities and charitable organizations to sell cryptocurrency donations starting in the second half of 2025. The move marks a significant step in integrating digital assets into broader financial and philanthropic ecosystems.

At the same time, enforcement actions against crypto platforms have continued. On Jan. 16, Upbit, South Korea’s largest cryptocurrency exchange, was served with a suspension notice for alleged violations of Know Your Customer (KYC) regulations. In response, Upbit filed a lawsuit against South Korea’s Financial Intelligence Unit in an effort to overturn the sanctions, arguing that the regulatory action was overly restrictive.

South Korea’s Growing Crypto Market and ETF Potential

South Korea is one of the world’s most active cryptocurrency markets, with more than 30% of its citizens reportedly investing in digital assets. The growing adoption of cryptocurrencies has fueled demand for regulated investment products like Bitcoin ETFs. If South Korea decides to approve Bitcoin ETFs, it could significantly boost institutional participation in the country’s crypto market.

South Korea’s interest in Bitcoin ETFs follows a broader global trend. The United States approved its first batch of spot Bitcoin ETFs in January 2024, a landmark development that attracted billions of dollars in inflows. Similarly, other countries, including Hong Kong and Canada, have already introduced regulated Bitcoin ETFs.

For South Korea, approving Bitcoin ETFs would provide investors with a more structured and transparent way to gain exposure to Bitcoin while benefiting from regulatory oversight. However, authorities remain cautious, weighing potential risks such as market manipulation, fraud, and investor protection concerns.

While South Korea has not yet made a final decision on Bitcoin ETFs, ongoing discussions and Japan’s evolving stance could influence the country’s regulatory direction. If Japan proceeds with lifting its crypto ETF ban, South Korea may feel added pressure to follow suit, especially given its reputation as a global financial and technology hub.

As regulatory conversations continue, the South Korean government is expected to take a measured approach, ensuring that any move toward Bitcoin ETF approval aligns with its broader financial stability goals. In the meantime, investors and industry stakeholders will be watching closely for further developments that could shape the future of crypto investment in the country.

With global adoption of Bitcoin ETFs on the rise, the question remains: Will South Korea take the leap, or will it continue to observe from the sidelines?

Mt. Gox Moves 12,000 Bitcoin Amid Market Volatility, Stirring Speculation on Creditor Repayments

In other Bitcoin news, the long-defunct cryptocurrency exchange Mt. Gox has once again made significant Bitcoin movements, transferring 12,000 BTC worth over $1 billion on March 6. The latest transfer, first flagged by blockchain analytics firm Arkham Intelligence, comes amid a turbulent week in the crypto market, raising speculation about its implications for creditors awaiting long-overdue repayments.

According to Arkham Intelligence, the Mt. Gox-linked wallet (1PuQB) conducted the large transfer with a transaction fee of just $1.64. As part of the transfer, 166.5 BTC—approximately $15 million—was moved to a Mt. Gox cold wallet (1Jbez), while the remaining 11,834 BTC was directed to an unidentified wallet (1Mo1n).

This transaction marks the first notable Bitcoin movement from Mt. Gox-controlled wallets in a month. The previous transaction, in early February, saw just 4 BTC shuffled between cold wallets, an insignificant sum compared to the latest move. The motivations behind this transfer remain unclear, though it adds to a growing pattern of Bitcoin activity linked to the collapsed exchange.

Mt. Gox-related wallets currently hold approximately 36,080 BTC, worth around $3.26 billion, per Arkham data. Past large-scale movements from these wallets have often preceded creditor repayments, fueling speculation that further distributions could be on the horizon.

This is not the first time that Mt. Gox-related wallets have seen major movements in recent months.

In December, the exchange transferred approximately 1,620 BTC through unknown wallets. Just two weeks earlier, it had moved more than 24,000 BTC—one of the largest transactions associated with the exchange in years.

The timing of these transactions often raises concerns in the market, as creditors continue to await their long-overdue repayments. The official Mt. Gox trustee had previously extended the repayment deadline by a full year, pushing it back to Oct. 31, 2025.

While the purpose of the latest transfer remains undisclosed, past transactions of this nature have sometimes been associated with preparatory movements for creditor distributions.

Bitcoin’s Volatility Amid Macroeconomic Uncertainty

The timing of the Mt. Gox Bitcoin movement coincides with a week of heightened volatility in the cryptocurrency market. Bitcoin has been on a rollercoaster ride, hitting a high of $94,770 on March 3 before plunging to $82,681 on March 4. Since then, it has rebounded.

One key driver of this market turbulence has been geopolitical and macroeconomic factors. On March 4, new trade tariffs imposed by US President Donald Trump took effect, rattling global markets and affecting high-risk assets like Bitcoin. While digital assets are often touted as a hedge against traditional financial instability, they remain highly sensitive to broader economic trends and policy shifts.

With Bitcoin transfers from Mt. Gox-linked wallets making headlines once again, creditors are watching closely for any signs of progress in the repayment process. Although the official deadline for creditor distributions remains set for late 2025, the recent movements could hint at preparatory steps being taken behind the scenes.

Given the significant number of Bitcoin still under Mt. Gox’s control, further transactions in the coming months could provide additional clues about the exchange’s repayment strategy. For now, the market remains on edge, with investors keeping a close eye on blockchain movements tied to the infamous exchange.

As Bitcoin continues its volatile price swings, traders and creditors alike are left wondering: is this the beginning of long-awaited repayments, or just another chapter in the Mt. Gox saga?