South Korea Moves to Lift Crypto Venture Restrictions
In a significant policy shift, South Korea’s Ministry of SMEs and Startups announced plans to remove restrictions preventing crypto-related businesses from qualifying as venture companies. This change grants access to government benefits like tax breaks and financial support, marking a pivotal moment for the country’s digital asset industry.
Implications for the Crypto Industry
The amendment reflects evolving perceptions of digital assets, alongside new legal safeguards for users. Classifying crypto businesses as ventures aims to spur sector innovation and growth. Existing ventures can now expand into digital assets without losing their status.
Benefits of Venture Classification
Venture companies in South Korea gain key advantages:
- 50% corporate income tax reduction for five years
- 75% cut in business real estate acquisition tax
- Up to 70% discounts on broadcast advertising
These incentives make the virtual asset sector more attractive to entrepreneurs and investors.
Next Steps
The ministry accepts public comments on the proposal until August 18, with enforcement timing pending. This follows last year’s crypto regulations that established user protections.
South Korea’s Crypto-Friendly Direction
This change aligns with other progressive measures, including exploring a central bank digital currency (CBDC) and potential stablecoins pegged to the won. Newly elected President Lee Jae-myung campaigned on crypto-positive policies, signaling strong government support for digital assets.
