South Korea is reportedly lifting a ban that has prevented crypto companies from being classified as venture companies, which will give them access to significant financial benefits. During a cabinet meeting on Tuesday, the Ministry of SMEs and Startups passed a partial revision to the Venture Business Act Enforcement Decree, with the change set to take effect on September 16.
This policy shift will allow crypto firms to apply for venture certification, opening the door to various benefits, including tax breaks, research and development grants, credit guarantees, and financial support. The move also means that existing venture companies can now expand into the crypto space without losing their classification.
The ban on crypto firms was first put in place in 2018 due to concerns about the speculative nature of the industry. The Ministry of SMEs and Startups stated that the decision to revoke the restrictions was made in light of the global maturation of the digital asset industry and the development of better user protection systems.
Officials hope this “regulatory improvement” will accelerate growth in virtual asset trading, brokerage, and related technologies like blockchain and smart contracts. The Ministry’s goal is to create a “transparent and responsible ecosystem” that will attract venture capital and foster new industries. This change follows a series of crypto-friendly policies under President Lee Jae-myung, with the South Korean crypto market projected to reach $1.1 billion in revenue in 2025. The country already has over 16 million crypto exchange users, representing more than 30% of its population.
September 2025, Cryptoniteuae
