South Korea Welcomes Crypto Startups with New Venture Certification Policy
In a groundbreaking policy shift, South Korea has announced the removal of its seven-year ban on venture certification for cryptocurrency firms. Effective September 16, 2025, crypto startups will now be eligible for venture capital, tax incentives, and state-backed support programs. This move highlights the government’s support for blockchain technology and positions the country as a leader in the global digital asset space.
Impact of the New Policy on South Korea’s Digital Ecosystem
The new policy marks a major shift in the country’s stance on cryptocurrency by removing virtual asset trading and brokerage from the list of restricted industries. Previously, these businesses were classified alongside gambling and nightlife services, barring them from government incentives. The change aligns South Korea with global trends, where blockchain and digital assets are gaining recognition as mainstream technological sectors.
Han Seong-sook, the Minister of SMEs and Startups, emphasized the importance of fostering a responsible digital ecosystem:
“We will focus our policy efforts on supporting startups to access financing, ensuring transparency in funding flows, and promoting innovation.”
Benefits for Blockchain and Crypto Startups
With this reform, crypto startups can now pursue venture certification, making them eligible for:
- Tax breaks
- Government-backed funding programs
- State initiatives such as TIPS and the K-Startup Grand Challenge
This expanded access aims to level the playing field for tech startups and attract global venture capital to South Korea. Investors and analysts see this as a strategic move to encourage innovation and foster a competitive environment for blockchain technologies across Asia.
Aligning with Global Blockchain Trends
The regulatory landscape for digital assets is evolving worldwide, and South Korea’s new policy complements these advancements. In the U.S., for instance, Bitcoin spot ETFs gained approval in 2024, and stablecoin regulations were expanded under the GENIUS Act in 2025. These developments reinforce the legitimacy of blockchain technologies on an international scale.
By integrating crypto startups into its venture ecosystem, South Korea acknowledges digital assets as technology-driven industries, rather than financial risks. This progressive stance increases investor confidence and strengthens Seoul’s commitment to being a global hub for fintech innovation.
Looking Ahead
Industry specialists anticipate that more startups will capitalize on the revised policies, scaling innovative blockchain solutions both domestically and globally. By embracing digital assets under its venture certification program, South Korea sends a clear message: it’s ready to be a leader in the digital economy and blockchain advancements.
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