South Korea lifts crypto venture restrictions, allowing crypto trading and brokerage firms to qualify as venture companies from Sept. 16, unlocking tax breaks, R&D grants, credit guarantees and financing support to accelerate investment and growth across blockchain, smart contracts and cybersecurity sectors.
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Venture certification opens tax and financing benefits for crypto firms
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Regulatory revision removes an October 2018 ban and takes effect Sept. 16, 2025.
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Industry projections show rising revenues and user adoption; Statista projects $1.1B in 2025, $1.3B in 2026.
South Korea lifts crypto venture restrictions, enabling venture certification and tax benefits for crypto firms; read how to prepare and what industries will benefit — learn more now.
South Korea’s Minister of SMEs and Startups, Han Seong-sook, said the regulatory change could stimulate growth in crypto and blockchain technologies.
What does South Korea lifting crypto venture restrictions mean?
South Korea lifts crypto venture restrictions by revising the Enforcement Decree of the Venture Business Act to permit virtual asset trading and brokerage firms to qualify as venture companies. The move, slated for Sept. 16, grants access to tax breaks, R&D grants, credit guarantees and other financing support.
How will venture certification benefit crypto firms?
Venture certification unlocks concrete financial tools: tax reductions, research and development grants, credit guarantees and direct financing support. Ted Koo, an attorney at law firm LIN, noted these advantages will help established venture companies expand into crypto without losing their status (plain text mention: Cointelegraph).
Officials say the change responds to global industry evolution and stronger user protection systems (plain text mention: KoreaTechDesk). The ministry anticipates faster capital inflow and expanded blockchain, smart contract and cybersecurity services.
Han Seong-sook (right) with Spain’s minister of industry Jordi Hereu (left), at APEC 2025 SME Ministerial Meeting. Source: Ministry of Production
Why did South Korea remove the restriction now?
The 2018 block stemmed from concerns over speculation and consumer protection. The Ministry of SMEs and Startups cites the “maturity of user protection systems” and shifting global norms as reasons to reverse that policy.
Minister Han Seong-sook said the regulatory improvement is intended to secure “future growth momentum in line with the global trend of the digital asset industry,” and to create a transparent, responsible ecosystem for venture capital inflows.
When will the changes take effect and what should firms do?
The partial revision is scheduled to take effect on Sept. 16, 2025. Firms should review certification criteria, prepare documentation demonstrating innovation and commercialization potential, and plan to apply for venture status to access financial incentives.
Practical next steps include consulting legal counsel, auditing R&D activities for grant eligibility and engaging with credit guarantee programs offered by government agencies.
Frequently Asked Questions
Can existing venture companies expand into crypto without losing certification?
Yes. The revision allows existing venture companies to expand into virtual asset activities while retaining their venture status, preserving access to tax and financing benefits.
How large is South Korea’s crypto market projected to grow?
According to Statista (plain text mention), the market is projected to reach $1.1 billion in 2025 and $1.3 billion by 2026, with over 16 million exchange users recorded domestically.
Key Takeaways
- Policy shift: The Enforcement Decree revision removes a 2018 restriction and allows crypto firms to seek venture certification.
- Financial impact: Eligible firms gain access to tax breaks, R&D grants, credit guarantees and financing support.
- Next steps: Firms should audit R&D, prepare certification documents and consult advisors ahead of the Sept. 16 effective date.
Conclusion
South Korea’s decision to lift restrictions on virtual asset trading and brokerage firms marks a significant regulatory shift that could accelerate investment and innovation in blockchain, smart contracts and cybersecurity. COINOTAG will continue monitoring implementation and industry response as the Sept. 16 changes take effect — prepare now to pursue venture certification and financing opportunities.
