South Korea Grants Crypto Firms Venture Status September 16
Key Takeaways
Policy Shift: On September 16, South Korea will lift restrictions on crypto firms and allow them to qualify as certified venture companies.
Benefits: Venture status provides tax breaks, financing support, and access to government-backed funds.
Industry Impact: The move is expected to boost investment, innovation, and the integration of crypto into South Korea’s regulated financial ecosystem.
On September 16 2025, South Korea will officially lift the restrictions that have barred many cryptocurrency-related businesses from being certified as venture companies.
Overview
According to the South Korean news outlet, the KoreaTechDesk announced that the Ministry of SMEs and Startups approved a partial revision to the Enforcement Decree of the Venture Business Act, removing virtual asset trading and brokerage firms from the list of excluded entities.
Under the old rules, crypto firms—especially VASPs (Virtual Asset Service Providers)—could not receive venture certification, which deprived them of the same benefits startups and other small‐/medium-enterprises enjoy.
The Minister of SMEs and Startups, Han Seong-sook, said,
“The regulatory improvement aims to secure future growth momentum in line with the global trend of the digital asset industry.”
She added,
“We will focus our policy capabilities on creating a transparent and responsible ecosystem to facilitate the smooth inflow of venture capital and the growth of new industries.”
What Venture Status Brings: Benefits & Impacts
With venture certification, crypto firms will become eligible for various government supports, including:
- Tax breaks (corporate income tax relief, among others)
- Financing support (access to credit guarantees, R&D grants, etc.)
- Easier access to state-subsidised funds and other startup/innovation ecosystem incentives.
Another key upside: already certified venture companies can now expand into crypto-related businesses without losing their accredited status.
Why the Shift Now & What It Signals
There are several reasons behind this policy reversal:
- The crypto/digital asset sector in South Korea has matured, with better regulatory safeguards and user protection mechanisms in place.
- The move aligns with broader policy directions under President Lee Jae-myung, who has campaigned to strengthen South Korea’s digital finance and fintech environment.
- There is a global trend toward integrating digital assets into regulated financial systems, rather than treating them as outside or adversarial to existing frameworks. South Korea appears keen to keep up.
Implications could include increased investment/venture capital flows into crypto firms, more innovation in blockchain, tokenisation, stablecoins, etc., and a better competitive positioning for Korea in the global crypto-economy. Conversely, regulators will likely closely monitor risk controls, transparency, and compliance to avoid speculative excesses.