Regulatory shift opens tax breaks, financing support, and new opportunities for blockchain innovation
South Korea is set to officially recognize crypto businesses as “venture companies” starting September 16, a move expected to reshape the nation’s digital asset ecosystem. The revision to the Venture Business Act removes long-standing restrictions that barred crypto trading and brokerage firms from qualifying for venture certification.
Opening doors for crypto innovation
According to the Ministry of SMEs and Startups, the change is designed to stimulate growth in blockchain, smart contracts, and cybersecurity technologies by granting crypto firms the same advantages as other venture companies. Benefits include tax reductions, research and development grants, credit guarantees, and financing support.
Attorney Ted Koo previously explained that the revision also enables existing venture-certified businesses to expand into the crypto sector without losing their classification, ensuring smoother integration between traditional and digital industries.
Why the restrictions are being lifted
The original ban was imposed in October 2018 amid concerns about speculative trading. However, the Ministry noted that global adoption of digital assets and stronger user protection systems have altered the industry landscape.
Minister of SMEs and Startups Han Seong-sook emphasized: “This regulatory improvement aims to secure future growth momentum in line with the global trend of the digital asset industry. 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.”
Crypto growth in South Korea
The policy shift follows a friendlier regulatory stance under President Lee Jae-myung, who has advanced measures such as stablecoin legalization and consumer protection rules.
South Korea’s crypto industry is already showing robust growth. Exchange users have surpassed 16 million — over 30% of the national population — while market revenues are projected to hit $1.1 billion in 2025 and $1.3 billion by 2026.
With venture certification now within reach, analysts expect a surge in crypto trading platforms, blockchain startups, and fintech solutions seeking to capitalize on the incentives.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.