Stablecoins and Spot ETFs Move Into the Regulatory Spotlight

[kevin1]

At the core of the strategy is a new stablecoin framework led by the Financial Services Commission. By early 2026, stablecoin issuers will need government authorization, full reserve backing, and guaranteed redemption rights — a direct response to the Terra-Luna collapse that erased roughly $40 billion in value.

South Korea also confirmed plans to approve spot digital asset ETFs, unlocking access for domestic institutional investors. Following precedents set in the United States and Hong Kong, this change could open the door for pension funds and corporate treasuries to gain regulated crypto exposure for the first time.

[etfs]

terra really scared them straight, this reads like regulation with memory