South Korea is preparing to lift restrictions that have long barred crypto businesses from being recognized as venture companies, a move that will grant them new access to tax incentives and financial support.
At a cabinet meeting on Tuesday, the Ministry of SMEs and Startups announced that it had approved a partial amendment to the Enforcement Decree of the Venture Business Act, removing the ban on virtual asset trading and brokerage firms, according to local outlet KoreaTechDesk.
The revision, set to take effect on Sept. 16, will enable crypto companies to apply for venture certification, unlocking benefits such as tax breaks and financing opportunities.
Ted Koo, an attorney at law firm LIN, told Cointelegraph in July that the policy shift would allow firms to access tax reductions, R&D grants, credit guarantees, and financing support. It would also let existing venture-certified companies expand into crypto without losing their status.
South Korea first imposed the restrictions in October 2018, citing concerns over the speculative nature of cryptocurrencies. The upcoming reform marks a significant shift in the country’s stance on the sector.
The government first signaled plans to remove the ban in July, following consultations with the public and industry experts.
According to KoreaTechDesk, the Ministry explained that its decision was driven by the industry’s growing global presence and the increasing maturity of user protection frameworks.
Ministry aims to boost crypto sector growth
With the restrictions lifted, officials expect faster growth across virtual asset trading, brokerage services, and related technologies, including blockchain, smart contracts, and cybersecurity.
Han Seong-sook, Minister of SMEs and Startups, described the reform as a “regulatory improvement” designed to secure “future growth momentum in line with the global trend of the digital asset industry.”
“We will concentrate our policy efforts on building a transparent and accountable ecosystem that supports the steady inflow of venture capital and the growth of emerging industries,” she said.
South Korea’s crypto sector gaining momentum
The country’s crypto industry has seen renewed support following the election of President Lee Jae-myung in June, who has advanced several crypto-focused initiatives, including legislation to legalize stablecoins.
According to Statista, South Korea’s cryptocurrency market is expected to generate $1.1 billion in revenue in 2025 and grow to $1.3 billion by 2026.
Crypto adoption is also on the rise, with the number of exchange users in the country surpassing 16 million—over 30% of the population—fueled in part by renewed optimism after U.S. President Donald Trump’s election victory last November.
