South Korea is taking steps to support the crypto industry by planning official venture status for crypto firms, potentially leading to significant tax breaks and funding.
A Big Policy U-Turn for South Korea
Crypto businesses in South Korea are currently not eligible to register as venture companies. This is because existing laws categorize them alongside restricted sectors such as gambling and nightlife, which do not qualify for state support. This restriction has cost crypto firms significantly. For example, in 2018, Upbit's parent company, Dunamu, lost its venture status and was hit with a ₩24 billion (around $18 million) tax bill. The ministry now aims to update the rules.
Why This Matters for the Industry
If the change is approved, it would enable crypto startups to apply for venture status for the first time, unlocking major benefits. Existing venture-certified companies would also be able to enter the crypto space without losing their status. According to the ministry, the change would *“revitalize and broaden the venture ecosystem”* and promote growth in the crypto industry. The government is currently collecting public feedback on the proposal.
A Clear Direction Under President Lee
The proposal is part of a broader shift under new President Lee Jae Myung, who took office last month with a strong pro-crypto stance. His administration is already pushing for spot Bitcoin ETFs and reviewing the current ban on institutional crypto trading.
If passed, this policy could open new doors for crypto businesses in South Korea by providing them with real financial support and helping the country position itself as a serious player in global crypto innovation.
