South Korea has amended its venture business law to include crypto firms. This aims to support and develop the virtual asset market.
Crypto Firms Gain Venture Status
The Ministry of SMEs and Startups in South Korea has amended legislation to recognize crypto firms as eligible venture companies. This change offers additional support and benefits to firms like Dunamu, the parent company of Upbit. According to the Ministry, "The recognition of innovative, business-viable Virtual Asset Service Providers (VASPs) as venture companies ... will revitalize and broaden the venture ecosystem and accelerate the growth of the virtual asset industry."
Tax Relief for Crypto Exchanges
Crypto firms can now access tax reductions, subsidies, and funding previously available only to SMEs. This legislative shift might enhance investor confidence and economic growth, benefiting key exchanges like Upbit and Bithumb.
2018 Exclusion Reversed for Tech Growth
In 2018, crypto firms lost their venture status, incurring higher taxes. This recent amendment counters the prior exclusion and aligns with South Korea's strategy for tech growth. Historical trends suggest this could bolster the crypto market, leading to increased institutional participation and a stronger venture environment.
The legislative changes support the development of the cryptocurrency industry in South Korea, providing new tax and funding opportunities. This step may play a significant role in rekindling interest in virtual asset sectors.
