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4w ago

South Korea Opens Venture Certification to Crypto Firms Starting Sept. 16

Officials describe the change as a way to channel capital into blockchain startups under tighter lending rules to limit speculative risk.

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South Korea's latest U-Turn - Why new venture status for crypto firms matters
south korea

Overview

  • The Ministry of SMEs and Startups said a Cabinet-approved revision to the Enforcement Decree will let virtual asset firms apply for venture status from September 16.
  • The move ends a prohibition in place since 2018 that kept crypto trading and brokerage companies from qualifying as venture firms.
  • Certified startups will gain access to tax incentives, financing, and state-backed programs such as TIPS and the K-Startup Grand Challenge.
  • Government leaders aim to position Seoul alongside Hong Kong, Singapore and Tokyo as a regional hub for blockchain innovation.
  • In parallel, the Financial Services Commission tightened crypto lending by banning high‑risk leveraged loans, capping annual interest at 20%, and directing exchanges to temporarily suspend lending services.