South Korea Lifts Venture Ban on Crypto Firms September 16

South Korea has officially lifted a seven-year-old ban preventing cryptocurrency trading and brokerage firms from qualifying as venture companies, effective September 16. This change allows crypto businesses to access venture certification, enabling them to receive tax breaks, financial support, and venture capital funding on par with traditional innovative firms. The reversal stems from the government's recognition of the maturing global digital asset market, enhanced domestic investor protection laws, and international regulatory developments such as the approval of Bitcoin spot ETFs and stablecoin legislation. The Ministry of SMEs and Startups emphasized that the move aims to foster growth in blockchain, cryptography, and other digital asset-related technologies, aligning the country’s startup ecosystem with global trends. The ban, initially imposed in 2018 due to concerns over speculative risks, had categorized crypto businesses alongside bars and gambling, but evolving market conditions and stronger user protections have prompted the policy shift. Officials expect this regulatory improvement to accelerate innovation, attract global capital, and strengthen South Korea’s competitiveness in next-generation digital finance sectors.