South Korea’s Bold Move: Embracing Crypto within the Venture Scene
Crypto enthusiasts, rejoice! The South Korean government is making strides to bolster the crypto sector by officially recognizing crypto businesses as integral parts of its enterprise landscape.
Opening New Doors for Crypto Firms
The Ministry of SMEs and Startups has introduced a groundbreaking proposal allowing crypto corporations to register as “venture companies.” This status is not only a label—it grants access to enticing advantages like tax reductions, government funding, subsidies, and loan guarantees. If this proposal gets the green light, it could put crypto startups on par with other tech-savvy businesses, potentially sparking a wave of innovation within the industry.
A Major Shift in Policy for South Korea
Currently, crypto businesses in South Korea find themselves in the identical category as gambling and nightlife sectors—areas which might be denied state support. This classification has been a costly barrier for crypto firms. For instance, in 2018, Dunamu, the parent company of Upbit, lost its enterprise status and faced a hefty tax bill of ₩24 billion (roughly $18 million). Despite difficult the choice in court, they didn’t succeed.
Now, the ministry is trying to revamp these outdated rules. The latest proposal seeks to remove virtual asset firms from the restricted category, allowing them to benefit from the same advantages as other startups.
“Virtual asset businesses with progressive and entrepreneurial qualities, based on latest technologies, might be newly recognized as enterprise businesses,” the ministry stated.
The Impact on the Crypto Industry
Should this policy change be approved, crypto startups could finally apply for enterprise status, unlocking a treasure trove of advantages. Existing venture-certified corporations could also dip their toes into the crypto world without fearing a lack of status.
The ministry believes this modification would “revitalize and broaden the venture ecosystem,” giving the crypto industry a much-needed boost. They are currently welcoming public feedback on this proposal, with submissions open until August 18, 2025.
- Also Read:
- Is 0% Crypto Tax Coming? Everything About the U.S. House Hearing
President Lee’s Vision: A New Era for Crypto
This proposal is an element of a broader shift under President Lee Jae Myung, who recently took office with a transparent pro-crypto agenda. His administration just isn’t only advocating for spot Bitcoin ETFs but can be considering launching a Korean won-based stablecoin and reviewing the present ban on institutional crypto trading.
Major banks within the country are already making moves, exploring stablecoin products and filing trademark applications, signaling growing interest.
The Bottom Line:
If passed, this policy could possibly be a game-changer for crypto businesses in South Korea, providing them with tangible financial support and helping the nation stake its claim as a serious contender in the worldwide crypto innovation arena.
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