South Korea has been reportedly lifting restrictions that prevent crypto businesses from qualifying as adventure companies, giving them a new access to tax breaks and financing support.
During a Cabinet meeting on Tuesday, the South Korea Ministry of SME and startups said it passed a slight revision of implementing venture business law enforcement to eliminate restrictions on business and brokerage businesses, According to Koreatechdesk is at South Korea News Outlet.
Change, ended up effectiveness in Sept. 16, Ay Allow crypto companies To apply for venture certification, which will open options for tax breaks and financial support.
Ted Koo, a lawyer in law firm Lin, told Cointelegraph in July Advantages of change include accessing tax cuts, research and developmental grants, credit guarantees, financing support, and allowing existing adventure companies to expand in the crypto space without losing their classification.
South Korea’s crypto change
South Korea’s block with crypto companies began in October 2018, due to concerns about the speculation that the cryptocurrencies at that time.
The government has earlier decided to lift the ban in July, pending public consultation and other related industry experts.
The ministry said the choice to recover restrictions was due to the emerging global industry status and the maturity of user protection systems, Koretochdesk reports.
Ministry expects the new proposal to grow the crypto industry
When the prohibition was formally raised, the ministry was reported to be expecting growth to accelerate in virtual asset trading, brokers, and other technologies such as Blockchain, Smart contracts and cybersecurity.
SME and startups Minister Han Seong-Sook, said “regulation improvement” aims to secure the “future growth of momentum in accordance with the global trend of the digital asset industry.”
“We will focus our policy capabilities in creating a transparent and responsible ecosystem to facilitate the smooth flow of adventure capital and the growth of new industries,” he added.
South Korean crypto industry in increase
The crypto industry in South Korea benefited from a more friendly environment after President Lee Jae-Myung’s election in Junethat since pushing various crypto -related laws, including a Bill to legal the stablecoins.
Related: South Korean crypto lending rates by 20%, leveraged loans forbidden
The cryptocurrency market in South Korea is expected to reach a revenue of $ 1.1 billion in 2025, According to On the online data statist platform, and grew to $ 1.3 billion by 2026.
Meanwhile, its crypto exchange Users in South Korea exceed 16 millionAfter receiving a help from the winner of President Donald Trump’s election in November. The figure represents more than 30% of the country’s population.
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