South Korea is moving to open the doors for crypto businesses by lifting restrictions that blocked them from becoming certified venture companies.
Starting September 16, companies in the crypto sector will be allowed to apply for “venture company” status. This new status will give them important benefits like tax breaks, research support, and easier access to loans and funding.
Until now, crypto firms were blocked from this system. The Ministry of SMEs and Startups confirmed the change during a cabinet meeting, saying it had revised the Venture Business Act to remove the restrictions, according to KoreaTechDesk.
New Benefits for Crypto Businesses
By opening the door, the government is placing crypto businesses on the same level as other young tech companies. Venture certification will let them apply for support programs that help small companies grow. These include grants for research and development, guarantees to get credit more easily, and tax reductions.
The Ministry said the main reason for the change is that the global crypto market has grown and user protection systems have improved. Minister Han Seong-sook called the step a “regulatory improvement” and explained it aims to “secure future growth momentum in line with the global trend of the digital asset industry.” She also added, “We will focus our policy capabilities on creating a transparent and responsible ecosystem to facilitate the smooth inflow of venture capital and the growth of new industries.”
From Ban to Growth Opportunity
The restriction that blocked crypto firms was first put in place in October 2018. At that time, officials worried about the speculative nature of cryptocurrencies and decided to keep them out of the venture system. But this summer, the government said it planned to change the rule after seeking input from the public and experts. Now the new rules are ready to go into effect.
The government hopes this step will lead to faster growth not just in crypto trading and brokerage but also in related areas like blockchain, smart contracts, and cybersecurity.
South Korea’s crypto industry has been getting stronger since the election of President Lee Jae-myung in June, who has backed several new crypto laws, including one to legalize stablecoins.
Data from Statista shows the country’s crypto market is expected to bring in $1.1 billion in 2025 and grow to $1.3 billion by 2026. More than 16 million South Koreans already use crypto exchanges, equal to over 30% of the population.
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