South Korea may lift restrictions on crypto firms, allowing them venture status and access to tax breaks, funding and regulatory benefits.
South Korea’s Ministry of SMEs and Startups announced Wednesday that it plans to lift restrictions preventing crypto-related businesses from qualifying as venture companies.
Currently, firms operating in the “virtual asset” sector are excluded from the government’s venture classification, which limits their access to various tax breaks and financial support. The ministry said the proposed amendment reflects a “shift in perception” of the digital asset industry and the establishment of “legal and institutional safeguards” aimed at protecting users.
The announcement said that “the government is currently focusing on nurturing the digital asset industry,” and following last year’s implementation of crypto regulations, legal protections for users are already in place. For this reason, restricting the industry is “inappropriate.”
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