South Korea has officially lifted its 2018 ban that excluded cryptocurrency firms from receiving venture company benefits, opening the door to new incentives, tax breaks, and financial aid. The policy change, approved in a cabinet meeting this week, will take effect on September 16, 2025, according to the Ministry of SMEs and Startups (MSS).
The amendment to the Venture Business Act removes restrictions on virtual asset trading and brokerage firms, allowing them to apply for venture certification. This provides access to the same advantages enjoyed by startups in other high-growth sectors. The government said the shift reflects stronger safeguards in the industry and a recognition of digital assets’ global legitimacy.
SMEs and Startups Minister Han Seong-sook said the reform is part of aligning Korea’s policies with international trends. “We will concentrate efforts on fostering a transparent and responsible ecosystem that allows venture capital to flow smoothly and supports the growth of new industries,” she noted.
The move follows months of public and expert consultations, as well as a broader pro-crypto agenda under President Lee Jae-myung, who was elected in June. His administration has also advanced legislation on stablecoins and blockchain applications.
South Korea’s domestic crypto market has grown to $1.1 billion in revenue this year, with forecasts projecting $1.3 billion by 2026. Officials expect the new policy to accelerate innovation in areas such as blockchain, cybersecurity, and smart contracts, integrating digital assets more deeply into the country’s economic framework.
