South Korea's Ministry of SMEs and Startups approved on 11 September 2025 a partial revision to the Enforcement Decree of the Venture Business Act, allowing cryptocurrency businesses to register as venture companies from 16 September 2025. The decision reverses a ban in place since October 2018 that excluded digital asset firms from the venture ecosystem due to concerns over speculative trading.
Under the amendment, crypto trading and brokerage firms will be able to apply for venture certification on the same terms as traditional companies, granting them access to corporate tax reductions, research and development grants, government-backed credit guarantees, and financing support. Existing venture-certified firms will also be permitted to expand into the digital asset sector without losing their classification. Ted Koo, an attorney at law firm LIN, confirmed to Cointelegraph that the change provides access to tax breaks, R&D grants, and credit guarantees. Han Seong-sook, the Minister of SMEs and Startups, stated that the regulatory reform aims to secure future growth momentum in line with the global trend of the digital asset industry. The move aligns with the crypto-friendly policies of President Lee Jae-myung, elected in June 2025, whose administration has pushed forward legislation including a bill to legalise stablecoins.
South Korea's cryptocurrency market is projected to reach $1.1 billion in revenue in 2025 and grow to $1.3 billion by 2026 according to Statista, while crypto exchange users in the country have surpassed 16 million, representing over 30% of the population. The restoration of venture status is expected to stimulate growth in blockchain infrastructure, smart contracts, and cybersecurity, while regulators continue to prioritise investor protection, as evidenced by the recent introduction of a 20% cap on crypto lending interest rates and a ban on leveraged crypto loans.
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