South Korea’s Ministry of SMEs and Startups announced its intention to lift restrictions on crypto firms, allowing them to qualify for venture company status with access to tax benefits, funding, and regulatory advantages. Currently, businesses in the virtual asset sector cannot obtain this classification, limiting their financial support options. The proposed amendment signals a shift in the government's perception of the digital asset industry, ensuring legal protections for users are in place. The ministry stated that restricting this sector has become inappropriate as it focuses on nurturing digital assets. The announcement encourages public feedback until August 18, with no final enforcement date yet confirmed. The change would allow existing venture firms to enter the digital asset space without losing their classification. These designated ventures could benefit from a 50% corporate income tax reduction for five years, among other advantages. This move aligns with increasing crypto-friendly policies in South Korea, especially under President Lee Jae-myung, who campaigned on supporting stablecoin issuance and other digital asset developments.

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