South Korea ends 2018 ban, permitting crypto startups to entry VC funding and apply for enterprise certification beginning Sept 16.
Crypto startups in South Korea are gaining new momentum as the federal government ends its 2018 ban on enterprise capital (VC) investments within the sector. With digital asset corporations now eligible for enterprise certification, new alternatives are opening for funding and development.
The coverage change displays South Korea’s shift in direction of supporting blockchain innovation and aligning with world digital finance tendencies.
Crypto Corporations No Longer on Restricted Funding Record
South Korea’s Ministry of SMEs and Startups (MSS) has confirmed the tip of a rule that beforehand blocked VC funding in crypto corporations.
The coverage change, authorized by the Cupboard, turns into efficient on September 16 and removes digital asset buying and selling and brokerage from the checklist of restricted enterprise varieties.
This checklist, created in 2018, had grouped crypto corporations with playing and grownup leisure companies. The up to date rule permits cryptocurrency startups to obtain the identical VC backing and advantages as different high-growth industries.
This replace gives them entry to state-supported applications for innovation and development.
Enterprise Certification Now Out there for Crypto Startups
With the coverage reversal, crypto-related companies can now apply for enterprise certification. This standing gives entry to a number of government-funded advantages, together with financing applications, risk-sharing investments, and accelerator platforms. These embrace initiatives like TIPS and the Okay-Startup Grand Problem.
Enterprise certification additionally permits firms to obtain tax advantages and improved entry to investor networks. This transfer helps digital finance innovation by permitting certified crypto companies to develop beneath formal authorities applications.
The MSS famous that the certification course of will comply with the identical circumstances utilized to startups in different sectors.
South Korea Aligns with International Digital Asset Developments
The rule change follows a number of steps by South Korea to create a secure framework for digital asset companies. In 2021, the federal government launched a licensing system for digital asset service suppliers. In July 2025, the Digital Asset Person Safety Act was enacted, introducing new shopper safeguards and buying and selling guidelines.
Minister Han Seong-sook said the reform goals to align South Korea with world digital asset tendencies and safe future development.
The nation has additionally proposed a stablecoin invoice to manage digital currencies tied to fiat currencies, as reported by the KoreaTechDesk, to make sure South Korea stays aggressive within the evolving crypto market.
Native and Regional Crypto Funding Efforts Strengthen
The elimination of the VC ban comes at a time of rising curiosity in crypto investments throughout Asia. In current weeks, Sora Ventures launched a crypto enterprise capital fund, aiming to build up $1 billion in Bitcoin. The fund has already secured $200 million in commitments.
In South Korea, Bitplanet has introduced plans to construct the nation’s first institutional-grade Bitcoin treasury. The agency has already raised $40 million for the mission. These developments present a rising curiosity amongst buyers and firms in digital property, and the brand new coverage may additional increase exercise within the nation’s crypto ecosystem.