- South Korea allows crypto firms venture status for growth support.
- New policy offers tax breaks and government financing.
- Potential catalyst for crypto industry development.
South Korea’s Ministry of SMEs and Startups announced on September 16, 2025, it will lift restrictions on crypto firms gaining venture company status, opening access to financial benefits.
This shift could catalyze growth in South Korea’s crypto industry, providing tax incentives and state-backed financing, significantly impacting funding dynamics in the sector.
South Korea’s Ministry of SMEs and Startups announced the removal of crypto firm restrictions for venture status, effective September 16, 2025. This change aligns with global digital trends, providing them access to tax benefits and government funding.
Minister Han Seong-sook emphasized the necessity for growth engines in new industries. “This is part of securing future growth engines in line with global trends. We will concentrate policy resources so that venture capital flows smoothly into new industries and helps them grow,” elaborated Han Seong-sook, Minister of SMEs and Startups. The Ministry of SMEs and Startups, supported by the cabinet, leads this regulatory transformation to cater to evolving global economic landscapes.
By lifting the ban, crypto startups are now eligible for state-backed venture capital and tax incentives. These opportunities mirror those accessible to biotech and AI sectors, significantly impacting the flow of investments.
The policy revision enables institutional venture capital investment in crypto, opening doors that have been shut since 2018. Financial impacts are anticipated, but specific fund allocations are yet to be detailed. The reversal reflects both the maturation of global digital asset markets and the rollout of stronger investor protection measures at home.
These policy shifts have broad implications for both the national economy and the blockchain industry globally, suggesting a strategic integration of digital assets into mainstream finance.
The adjustment follows global precedents like the U.S. Bitcoin ETFs approval. This could boost investor confidence in digital assets, impacting BTC, ETH, and local exchange-listed coins. DAXA, Industry Association of South Korea’s Major Exchanges, noted that “The policy shift could be a ‘turning point’ for the industry’s development.”
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