South Korea has officially lifted its nearly decade-long ban on recognizing cryptocurrency businesses as venture companies, marking a major shift in the country’s stance on digital assets. The Ministry of SMEs and Startups has approved an amendment to the Venture Business Act, allowing digital asset firms to apply for venture certification starting September 16, 2025.
This change comes after a ban was imposed in 2018, which excluded crypto businesses from receiving essential benefits such as tax incentives, government funding, and startup support. With this new policy, crypto companies can now access the same resources as other innovative tech startups, signaling a new era for South Korea’s rapidly evolving digital economy.
Why South Korea Is Embracing Crypto
The country’s shift in policy is largely driven by President Lee Jae-myung’s administration, which took office in June 2025. Known for his pro-crypto stance, President Lee has prioritized digital finance reforms as part of a broader strategy to bolster South Korea’s global competitiveness and technological leadership.
South Korea now views blockchain technology and cryptocurrencies as vital components of its future growth, helping to drive innovation, attract global investment, and support emerging technologies. By revising the Venture Business Act, the government aims to create a robust environment for blockchain startups, smart contracts, and cybersecurity solutions, positioning the nation as a leader in next-generation technologies.
A Balanced Approach to Regulation and Innovation
While this policy change opens up new opportunities for the digital asset industry, South Korea is also taking steps to ensure investor protection remains a top priority. Recent regulatory actions have focused on curbing risky practices in the crypto space, particularly in crypto lending. These measures include banning leveraged loans and capping interest rates on crypto loans to protect both investors and the broader financial system.
By introducing these safeguards, the government is aiming to strike a balance between fostering innovation and ensuring that the market remains stable and secure. South Korea’s approach is an effort to create a sustainable crypto ecosystem, which will not only attract investment but also build public confidence in the country’s digital asset sector.
South Korea’s Crypto Future: What’s Next?
With the revised policy, South Korea is setting the stage to become a major player in the global crypto economy. The country is focused on providing supportive infrastructure for blockchain projects while maintaining strict oversight to prevent fraud and market manipulation. As global competition heats up for crypto hubs, South Korea is positioning itself as a destination for blockchain entrepreneurs and digital finance innovators.
The revised Venture Business Act is a clear signal that South Korea is ready to embrace the digital future, balancing growth, regulation, and investor protection to ensure a strong, sustainable blockchain ecosystem.
