South Korea Allows Crypto Companies to Become Venture Capital Firms
Date: 2025-09-11 Author: Oliver Abernathy Categories: IN WORLD
Amendments to the "Special Act on Venture Capital Business Support" will come into force in South Korea on September 16. These changes eliminate previous restrictions that prevented cryptocurrency companies from receiving the status of venture capital firms and conducting trading or brokerage activities in the field of virtual assets.
The adopted innovations give crypto companies the opportunity to apply for government grants for research and development, as well as count on loan guarantees and other financial support measures. Thus, the cryptocurrency sector receives equal conditions with other areas of innovative business in the country.
The Ministry of Small and Medium Enterprises and Startups (MSS) emphasized that the decision is based on the importance of the industry for the national economy. According to the agency, cryptocurrency services cover more than 30% of active citizens of South Korea, and the annual turnover of this segment is estimated at approximately $1.1 billion. This confirms the need to provide companies in the sector with full access to government development tools.
It is worth noting that the Financial Services Commission (FSC) recently ordered the suspension of crypto lending services on local exchanges. This step was a temporary measure necessary to develop updated regulatory rules and ensure greater market security.
The decision to lift the ban on recognizing crypto companies as venture firms reflects the government's course on supporting digital innovation, while maintaining control and balance of interests between investors and the state. The new approach allows the cryptocurrency sphere to be organically integrated into the startup support system, which has long been working for other technological areas, such as biotechnology or artificial intelligence.
Thus, South Korea is taking an important step towards forming a more sustainable and competitive ecosystem of digital assets. Granting crypto companies the status of venture firms opens up access to new sources of funding and creates conditions for further growth of the industry, which can strengthen the country's position as one of the leaders in the field of fintech and blockchain technologies.
