- South Korea’s Ministry of SMEs and Startups has proposed amendments to permit crypto firms to register as “venture companies”
- This grants them access to government incentives such as tax reductions.
- Currently, crypto businesses are barred from obtaining venture status, grouped under restricted industries alongside gambling establishments.
South Korea’s Ministry of Small and Medium Enterprises (SMEs) and Startups has proposed a legislative amendment to reclassify crypto firms as “venture companies” rendering them eligible for significant government incentives, including tax breaks and financial aid.
The ministry says it plans to revise the Special Act on Promoting Venture Businesses, which currently excludes crypto-related firms from the venture certification program.
Under the current law, crypto companies are grouped with industries like gambling and nightlife, disqualifying them from venture status.
The change would allow virtual asset trading and brokerage service providers to be recognized alongside other startups and SMEs that qualify for state support based on innovation, investment, and R&D criteria.
If it comes into effect, this amendment would legitimize crypto firms within South Korea’s startup ecosystem and allow existing venture companies to enter the crypto space without forfeiting their government support.
The ministry said the move would “revitalize and broaden the venture ecosystem and accelerate the growth of the virtual asset industry.”
The proposal aligns with the pro crypto agenda of newly elected President Lee Jae Myung, who has pledged to institutionalize Korean won based stablecoins and lift bans on crypto ETFs and institutional crypto trading.
Recent developments include new legislation on stablecoins and a rush by local banks and payment providers to trademark stablecoin symbols.
The draft legislation is now open for public consultation.
