Back
South Korea to Lift 2018 Ban on VC Investment in Crypto Firms

South Korea to Lift 2018 Ban on VC Investment in Crypto Firms

South Korea's Ministry of SMEs and Startups redefines digital asset businesses as eligible for venture certification, offering new benefits such as tax cuts and government subsidies starting September 16, 2025.

Fact Check
Multiple recent news sources directly and consistently report that South Korea has lifted its ban on venture capital (VC) investment in cryptocurrency firms. Several sources explicitly reference a 'seven-year restriction' or a '2018 ban', corroborating the key details of the statement.
    Reference: 12
Summary

South Korea’s Ministry of SMEs and Startups has lifted a nearly decade-long ban, allowing cryptocurrency businesses to qualify for venture certification. This change, effective from September 16, 2025, opens doors for crypto firms to access tax breaks and government subsidies, reflecting a shift in the country's regulatory stance toward digital assets. The move is expected to foster growth in sectors like blockchain infrastructure and cybersecurity, positioning South Korea as a hub for digital asset innovation.

Terms & Concepts
  • Venture certification: A classification that allows businesses to access financial support, tax cuts, and other benefits designed to foster innovation and growth.
  • Digital asset business: A broad term referring to companies involved in the cryptocurrency, blockchain, and related sectors, including blockchain infrastructure and smart contracts.
  • Special Act on Fostering Venture Businesses: A regulatory framework designed to promote innovation in South Korea by granting eligible businesses access to financial incentives, including tax breaks and government aid.