The South Korean Ministry of Small and Medium Venture Businesses is pushing forward a plan to allow cryptocurrency companies to register as venture businesses. Once venture business registration becomes possible, they will be able to receive government subsidies, tax benefits, and financial support.
This move represents a broader change to promote innovation in the digital asset sector under the pro-cryptocurrency President Lee Jae-myung's administration.
South Korea Proposes Law Revision to Support Crypto Businesses
In an official announcement released today, the Ministry of Small and Medium Venture Businesses proposed amending specific South Korean laws, specifically the Enforcement Decree of the Special Measures Act on Nurturing Venture Businesses. This law provides various benefits to venture capital companies.
These include government-supported matching funds, tax benefits, loan guarantees, subsidies, and investment support for designated venture clusters.
However, current regulations restrict virtual asset businesses such as cryptocurrency trading and brokerage. This restriction means:
- New businesses cannot apply for venture business status if they are involved with virtual assets.
- Existing venture businesses may have their venture business certification canceled if they register as virtual asset operators.
The Ministry now wants to remove virtual asset-related sectors from the list of restricted industries. This change comes with increased industry awareness and the establishment of legal and institutional frameworks, including laws like the Virtual Asset User Protection Act aimed at user protection.
The proposal intends to promote industry growth, ensure policy consistency, and foster innovation within the sector.
"Virtual asset businesses with innovative and entrepreneurial characteristics based on new technologies will be newly recognized as venture businesses. Existing venture businesses will be able to pursue virtual asset-related businesses, which is expected to revitalize the venture ecosystem and expand its foundation. This is believed to promote the growth of the virtual asset industry." – Official Announcement
The Ministry is now seeking public opinion on the proposed changes. Institutions, organizations, and individuals can submit their opinions online or in writing until August 18, 2025.
This development occurs amid increasing cryptocurrency promotion in the country under a favorable regulatory environment. The president has made several pro-cryptocurrency promises, including implementing a second-stage framework for cryptocurrency assets.
He also promised to ease regulations to promote private sector-led real-world applications. Moreover, the president pledged to introduce a physical Bit coin ETF and issue a stablecoin pegged to the Korean won.
Accordingly, BeInCrypto previously reported that eight Korean banks are collaborating to launch a joint stablecoin. These efforts indicate a promising future for cryptocurrency in the country, potentially positioning South Korea as a leader in global crypto innovation and promoting sustainable growth in the sector.
