When people in South Korea talk about crypto ETFs, exchange-traded funds that track cryptocurrency prices without requiring direct crypto ownership. Also known as cryptocurrency ETFs, they let investors gain exposure to Bitcoin or Ethereum through traditional stock markets—without holding wallets or dealing with exchanges. But here’s the catch: as of 2025, crypto ETFs still don’t exist in South Korea. Not one. Not even a pilot. The country’s financial regulators have blocked them, not because they don’t understand the tech, but because they’re terrified of fraud, volatility, and unregulated access.
South Korea’s approach to crypto isn’t just strict—it’s historic. The Upbit penalties, a $34 billion potential fine for KYC failures sent shockwaves through the entire industry. That wasn’t a warning. It was a reset. The South Korea crypto regulation, a system that demands full identity verification and transaction monitoring now applies to every exchange, wallet provider, and even crypto-related ads. That’s why crypto exchange Korea, like Bitsonic, which operates only in Korean with no English support exists—it’s built to comply, not to attract global users.
What does this mean for you? If you’re in Korea and want crypto exposure, you can’t buy an ETF. You can only trade directly on local exchanges like Upbit or Bitsonic, which means you’re fully exposed to price swings, security risks, and the same KYC rules that cost Upbit billions. Meanwhile, global ETFs—like those in the U.S. or Europe—keep growing, while Korea stays on the sidelines. The reason? A series of high-profile scams, fake airdrops like CovidToken airdrop, a non-existent project used to steal funds, and exchanges like LongBit that never existed. Regulators saw how easily people got tricked, and they shut the door hard.
But here’s the twist: Korea isn’t anti-crypto. It’s anti-chaos. The same people who can’t buy a crypto ETF can still trade Bitcoin on their phones, earn tokens through travel rewards like CANDY token, a travel-based reward system from TripCandy, or stake crypto with proper compliance. They just can’t hide behind anonymity. And that’s why every article in this collection—whether it’s about KYC and AML requirements, mandatory global rules for crypto platforms, or how Canada seized $40 million from TradeOgre—fits into one big picture: in Korea, crypto isn’t about speculation. It’s about control.
Below, you’ll find real stories from the front lines: how exchanges got crushed by fines, why fake airdrops still pop up, and what happens when you try to trade without following the rules. No fluff. No hype. Just what’s actually happening in South Korea’s crypto world—where the biggest risk isn’t a price drop. It’s breaking the law without even knowing it.
South Korea's FSC has transformed crypto from a restricted activity into a regulated financial sector. Learn how real-name accounts, ETFs, corporate holdings, and the 2025 Virtual Asset Law are reshaping the market.