South Korean crypto firms are poised to receive "venture company" status, a move that marks a significant shift in the government's stance towards the digital asset sector. Effective September 16, 2025, revisions to the Enforcement Decree of the Venture Business Act will remove restrictions on virtual asset trading and brokerage businesses. This reclassification will allow crypto firms to apply for venture certification, opening up access to tax breaks, government subsidies, and financial support.
The Ministry of SMEs and Startups (MSS) played a key role in this policy change, confirming that the Cabinet approved the amendment on September 9. This reverses a previous policy from 2018 that explicitly excluded blockchain-based crypto firms from receiving venture certification, placing them in the same category as gambling venues and nightclubs. The original restriction was introduced amid concerns about speculative frenzy and social issues.
The decision to lift the ban reflects the maturation of global digital asset markets and the implementation of stronger investor protection measures in South Korea. Since 2021, South Korea has introduced mandatory registration for virtual asset service providers (VASPs), and in July 2025, the Virtual Asset User Protection Act took effect, mandating deposit protection, transaction record retention, and bans on unfair trading. These measures have helped to mature the domestic framework and address earlier concerns.
Furthermore, the move aligns with international developments, including the U.S. approval of spot Bitcoin ETFs in January 2024 and new legislation regulating stablecoins in July 2025, indicating the growing legitimacy of digital assets. By removing the restrictions, Seoul aims to foster blockchain and cryptography as "deep tech" fields within the broader digital asset ecosystem. The government intends to focus policy resources to ensure that venture capital flows smoothly into new industries, aiding their growth.
The reclassification is expected to unlock new opportunities for both entrepreneurs and investors in South Korea's crypto market. With venture status, crypto firms gain access to various benefits, including tax reductions and easier access to state-backed financing. This levels the playing field for blockchain startups, putting them on par with other deep-tech sectors like biotechnology, semiconductors, and artificial intelligence. The reform is expected to unlock financing options, attract risk capital, and provide entry into state-supported innovation programs.
