South Korea is preparing to lift longstanding restrictions that bar cryptocurrency firms from registering as venture businesses, a move that could unlock major benefits in taxation, funding, and regulatory access.
Government Shifts Stance on Crypto Industry
On Wednesday, the Ministry of SMEs and Startups announced a proposal to allow crypto-related companies to qualify as venture businesses. Under the current framework, companies involved in virtual assets are excluded from this classification, limiting their access to crucial government incentives.
The ministry cited a âshift in perceptionâ of the digital asset industry and noted that South Korea now has âlegal and institutional safeguardsâ in place to protect users. Therefore, continued exclusion from venture support is deemed âinappropriate.â
Public Consultation and Timeline
The government has opened the proposal for public comments until August 18, with an official implementation date to be determined afterward. This marks a major development in South Koreaâs evolving approach to cryptocurrency regulation.
If approved, the amendment will allow:
- New crypto companies to gain venture classification.
- Existing venture businesses to expand into digital assets without losing their current status.
https://cointelegraph.com/news/south-korea-to-lift-crypto-venture-restrictions
Benefits of Venture Company Status in South Korea
Being registered as a venture business in South Korea offers a range of significant advantages, including:
- 50% reduction in corporate income taxes for five years
- 75% cut in business real estate acquisition taxes
- Up to 70% discounts on broadcast advertising
- Easier access to public and private funding sources
This change is expected to revitalize South Koreaâs venture ecosystem and strengthen the countryâs position as a global leader in blockchain and digital asset innovation.
Broader Crypto Policy Developments in South Korea
The move comes as part of a broader trend toward crypto-friendly legislation in the country. In 2024, comprehensive crypto user protection laws were enacted, laying the groundwork for a more regulated and investor-safe environment.
Furthermore, the Bank of Korea recently paused its CBDC pilot program to reassess the role of stablecoins and digital assets within the financial system.
Newly elected President Lee Jae-myung has also been a vocal supporter of digital assets. His administration has proposed stablecoin issuance, tax reform, and the integration of digital finance into national economic planning.
Industry and Market Response
The announcement has already triggered optimism in the market. Shares of major South Korean banksâKakao Bank, Kookmin Bank, and the Industrial Bank of Koreaâsurged by 10% to 19% earlier this week following their stablecoin trademark filings, showing investor confidence in the nationâs pro-crypto direction.
Conclusion
By lifting restrictions on crypto ventures, South Korea is signaling its commitment to fostering a dynamic, innovative digital economy. If the proposal passes, the country will be among the first to formally integrate crypto firms into its venture support infrastructure, unlocking new potential for growth, investment, and global competitiveness.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.