South Korea’s Ministry of SME and startup announced on Wednesday that it plans to raise restrictions that prevent crypto -related businesses from qualifying as adventure companies.
Currently, companies operating in the “Virtual Asset” sector are not included from the classification of government adventure, limiting their access to various tax breaks and financial support. The ministry Says The proposed amendment reflects a “transfer of understanding” of the digital asset industry and the establishment of “legal and institutional care” aimed at protecting users.
The announcement said that “the government is currently focusing on the care industry of the digital asset,” and following The implementation of last year’s crypto regulationsLegal protections for users are already in place. For this reason, the restriction of the industry is “inappropriate.”
The ministry will receive public comments on the proposal until August 18. A final execution date has not been announced.
Related: 27% of Koreans aged 20-50 hold crypto, 70% more investment: Report
The implications for the South Korean crypto industry
The proposed change will allow crypto businesses to qualify as adventure companies. Moreover, existing adventure companies can expand in the digital asset space without losing their classification.
“It is expected to survive and expand the venture ecosystem and support the growth of the virtual asset industry.”
Being qualified as a “adventure” gives companies to South Korea accessing a series of government benefits. They are Include A 50% corporate tax cut in five years, a 75% Business real estate acquisition tax cut and broadcast ad discount up to 70%.
Related: South Korea Banks plan won-pegged stablecoin launch of 2026
South Korea’s bets in Crypto
Suggested changes are following a growing course of crypto-friendly policies in South Korea.
On Sunday, the Bank of Korea informed commercial banks to participate in the Pilot of the Central Bank Digital Currency (CBDC) that the tests were temporarily suspended. An old officer from one of the banks told the local media that pause was intended to give government time to Clarify the policy of stablecoin And how a CBDC can fit into a wider digital financial ecosystem.
The newly elected President Lee Jae-Myung has campaigned in a List of Crypto Promises. Among those allowing the release of stablecoins that are contained in the local Fiat Currency.
On Tuesday, Cointelegraph reported that the sharing of Kakao Bank, Kookmin Bank and the Industrial Bank of Korea Rose of from 10% to 19% following Stablecoin’s trademark applicationsSigned a growing investor trust in the country’s crypto direction.
Magazine: The Genius Act reopened the door for a meta stablecoin, but would it work?
