South Korea has officially lifted its nearly decade-long restriction that prevented cryptocurrency businesses from being recognized as venture companies. The Ministry of SMEs and Startups approved a revision to the Venture Business Act, which will allow digital asset firms to apply for venture certification starting September 16. This marks the end of a ban imposed in 2018, which excluded crypto companies from tax benefits and government support available to other startups.

The decision reflects a shift in South Korea’s stance toward crypto, fueled by the election of pro-crypto President Lee Jae-myung in June. His administration has prioritized digital finance reforms and sees digital assets as key to boosting innovation, attracting global investment, and enhancing competitiveness in next-generation technologies. Officials say the policy aims to align the country with global crypto trends while fostering blockchain infrastructure, smart contracts, and cybersecurity.

Authorities emphasized that investor protection remains a priority. Recent measures tightened oversight of crypto lending, banning risky leveraged loans and capping annual interest rates. By balancing growth and regulation, South Korea hopes to position itself as a leading hub for digital asset innovation.

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