South Korea will lift a seven-year block that kept cryptocurrency trading and brokerage firms from qualifying as venture companies, a move that could bring blockchain into the mainstream, according to a press release by the Ministry of SMEs and Startups.
Korea Opens Path for Blockchain Startups, Ends Venture Ban for Crypto: Government Report
12 September 2025 - 09:04 CEST
Official approval
The Ministry said on Tuesday the Cabinet approved an amendment to its venture business laws. From 16 Sept., crypto firms will be able to apply for venture certification under the same rules as biotech, AI or semiconductor startups — unlocking tax breaks, state-backed financing and access to incubator programs.
Seoul first imposed the restriction in 2018, grouping crypto alongside gambling and nightlife after retail speculation rattled regulators. Industry groups long argued that the classification was outdated and cost Korea global competitiveness.
“This regulatory reform is designed to align Korea with global trends in digital assets and to secure future growth engines,” said Han Seong-sook, Minister of SMEs and Startups.
Worldwide alignment
The rollback comes as digital assets have witnessed expansive growth in other major markets. The Trump administration has pushed for comprehensive regulatory frameworks intended to boost the industry, while the EU has moved to allow crypto firms to operate across member states through MiCAR.
Korea itself has since built out a licensing system for virtual asset service providers and, in July, enacted a user protection law mandating deposit safeguards and stricter compliance.
Officials say the shift reflects a more mature regulatory environment. “We will concentrate policy efforts on fostering a transparent and responsible ecosystem that allows venture capital to flow smoothly,” Minister Seong-kook noted.
