In a move signaling a thaw in its stance on digital assets, South Korea has approved changes to allow cryptocurrency firms to qualify as venture companies. This change will allow the companies to gain access to tax incentives and financial aid that were previously off-limits.
The decision emerged from a cabinet meeting held on Tuesday, where the Ministry of SMEs and Startups (MSS) finalized a partial amendment to the Enforcement Decree of the Venture Business Act. This update eliminates barriers for virtual asset trading and brokerage operations, as reported by local outlet KoreaTechDesk.
Starting from September 16, crypto companies in South Korea can apply to be certified as venture businesses, which will provide them access to tax benefits and financial assistance. In October 2018, South Korea banned crypto firms from certain benefits due to concerns about risky cryptocurrency trading.
In July 2025, the government announced plans to lift this ban after discussing it with the public and industry experts. According to the ministry, the shift reflects the sector’s growing international legitimacy and stronger safeguards for users.
Officials anticipated that it would spur expansion in areas like virtual asset services, blockchain applications, smart contracts, and cybersecurity measures. SMEs and Startups Minister Han Seong-sook described the adjustment as a regulatory tweak designed to align with worldwide shifts in digital assets.
Han stated, “This regulatory reform is designed to align Korea with global trends in digital assets and to secure future growth engines. We will concentrate policy efforts on fostering a transparent and responsible ecosystem that allows venture capital to flow smoothly and supports the growth of new industries.”
South Korea’s Crypto Sector Surges
South Korea’s cryptocurrency sector has grown due to a more supportive regulatory environment under President Lee Jae-myung, who was elected in June and has advanced legislation such as a stablecoin legalization measure with a new bill. Statista data shows the domestic crypto market hitting $1.1 billion in revenue this year, climbing to $1.3 billion by 2026.
This development underscores Seoul’s efforts to integrate crypto into its economic fabric without overlooking past cautions.
Also Read: South Korea Plans to Share Crypto Transactions Data Globally
