South Korea lifts its 2018 ban on crypto firms qualifying as venture companies. This decision opens new opportunities for industry growth.
Policy Shift After Seven Years
The ban on crypto firms was first introduced in October 2018 amid concerns about speculation and risks in trading. For many years, exchanges and digital asset firms were denied the benefits given to startups. Now, under the new rules, crypto firms can apply for certification and receive government support.
Economic Growth and Market Expansion
South Korea currently has over 16 million registered crypto exchange users, representing over 30% of its population. Industry revenue is estimated to reach $1.1 billion in 2025 and grow to $1.3 billion by 2026. The Ministry of SMEs and Startups expects growth to accelerate once the policy is in effect.
From Restriction to Innovation Hub
Over the years, South Korean regulators have become more lenient with digital assets, viewing cryptocurrencies as a source of innovation. Recognizing crypto firms as venture businesses integrates them into the country's broader innovation activities, which could lead to new opportunities.
The lifting of the ban on venture certification for crypto firms could transform South Korea into a global hub for digital asset innovation. Whether they will become legitimate businesses or merely engage in speculative activities remains an open question.
