Cryptocurrency Firms in South Korea Gain Venture Status

- South Korea lifts a 2018 ban and lets crypto firms qualify for venture certification.
- The reform grants tax breaks, research support, and credit guarantees to crypto firms.
- Over 16 million users and $1.3B in revenue forecast by 2026 show rising industry growth.
South Korea will lift its 2018 ban on crypto firms qualifying as venture companies on September 16, 2025. The change, introduced through the revised Enforcement Decree of the Venture Business Act, enables crypto trading and brokerage firms to apply for venture certification, unlocking tax incentives, research and development grants, and venture capital support. The reform comes as the government recognizes the digital asset industry’s maturity and its expanding role in economic growth.
Policy Shift After Seven Years
The ban on crypto firms was first introduced in October 2018 amid concerns about speculation and the risks of unscrupulous trading. For many years, exchanges, brokers, and digital asset companies were denied the same benefits that are routinely conferred on high-growth startups. This meant no tax incentives or pricing programs were extended to emerging industries.
Now, under the new rules, crypto firms can apply for certification and receive government-backed advantages. These include corporate income tax reductions, property acquisition tax relief, and credit guarantees. Venture recognition also offers financing opportunities and research grants that can strengthen operations in blockchain, smart contracts, and cybersecurity technologies.
Economic Growth and Market Expansion
South Korea currently has more than 16 million registered crypto exchange users, representing over 30% of its population. The market has grown steadily, with industry revenue projected to reach $1.1 billion in 2025 and expand to $1.3 billion by 2026, according to Statista.
The Ministry of SMEs and Startups expects growth to accelerate once the policy takes effect. Officials anticipate gains not only in crypto trading and brokerage but also in related technologies like blockchain infrastructure and cybersecurity. These areas are seen as central to the country’s next wave of industrial innovation.
Minister of SMEs and Startups Han Seong-sook said the reform aims to secure “future growth momentum in line with the global trend of the digital asset industry.” She further noted that the government will direct its policy capabilities toward creating a transparent and responsible ecosystem that facilitates venture capital inflows and supports the expansion of new industries.
The onset coincided with a friendlier setup for Lee Jae-myung’s presidential win in June. His government, through various initiatives concerning digital assets, is making a coordinated push to make South Korea a hub for crypto innovation.
Related: South Korea Freezes Crypto Lending While ETFs Gain Speed
From Restriction to Innovation Hub
Over the years, regulators in South Korea have slowly become lenient with digital assets. They now regard cryptocurrencies as a source of innovation and global competitiveness instead of suppressing the market.
The ministry’s recognition of crypto firms as venture businesses places the industry under the broader innovational activities of the country. It marks a fundamental shift from a risk-minimizing supervision regime to one that channels capital and accelerates technological growth.
Now that the ban is lifted, the actors of the crypto sphere will be considered legitimate enterprises akin to many long-established venture-backed industries. The older question arises: Is this recognition going to position South Korea as the global hub of digital asset innovation, or will it merely begin the chase for speculative activities in this pretty volatile sector?
The post Cryptocurrency Firms in South Korea Gain Venture Status appeared first on Cryptotale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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