Crypto firms eligible for venture status Sept 16 as Korea lifts ban

Korea lifts ban: South Korea opens venture doors for crypto firms

South Korea is changing course for the country’s crypto industry. The government has approved a rule change that will let virtual asset trading and brokerage firms apply for official “venture company” status. The change takes effect on September 16, 2025 and will allow crypto companies to access tax breaks, R&D grants, credit guarantees and other government support that can companies receive.

Source : Koreatechdesk

What The Rule Change Means

Under the new measure, businesses that run crypto exchanges or provide brokerage services can seek the same venture certification that many tech startups already use.

The certification makes it easier for young companies to attract funding, win government-backed loans and get tax relief. Supporters say the move will help blockchain projects grow into deeper technology sectors, not just trading businesses.

Why the government moved now

Officials want to boost innovation, draw venture funding, and grow deep-tech jobs. Global trends and demand for blockchain solutions pushed the government to act now to support long-term economic growth. With the appointment of new President Lee Jae-myung the Korean scenario changed as he is a big supporter of digital assets.

But officials and industry groups argued the ban also blocked innovation and kept blockchain companies from joining mainstream startup funding channels. The recent revision is part of a wider push to bring digital assets into the formal innovation economy.

Key Past Actions Taken by the Country:

A 2018 restriction that barred crypto firms from venture status, mandatory VASP registration in 2021, and stronger user-protection rules in 2024–2025 . These earlier rules were tough and difficult to work with cryptomarket smoothly.

With this new steps made the industry more transparent and safer, so now, with those safeguards in place, Korea lifts ban and will allow cryptocurrency firms to apply for venture certification starting September 16, 2025.

Risks And Questions Ahead

Experts warn that opening the door does not remove all risks. Regulators still plan to keep strong rules on investor protection, reporting and licensing. Some critics say the measure must be paired with clear tax guidance and stronger oversight to avoid repeating past problems. The coming weeks will be important as agencies publish detailed procedures for applying and qualifying for this status

What This Means For Users And Investors

Small and medium firms stand to gain the most. Larger firms may also benefit because wider industry legitimacy can attract more institutional investors. Observers expect the change to make fundraising simpler and reduce some of the legal and tax hurdles that startups faced until now.