South Korean cryptoasset-related corporations can now apply for enterprise capital (VC) funding after Seoul abolished a seven-year-old ban.
The South Korea newspaper Seoul Kyungjae reported that the Ministry of SMEs and Startups says the present ban on crypto companies’ VC funding will finish on September 16.
The ministry mentioned the State Council, South Korea’s chief government physique and ministerial cupboard has signed off on the transfer.
VC Funding for Crypto Corporations: South Korea Scraps 2018 Ban
The council has agreed to make a partial modification to the Enforcement Decree of the Particular Act on the Promotion of Enterprise Companies.
The modification will successfully scrap the designation of crypto buying and selling and brokerage-providing companies as “a restricted enterprise enterprise.”
The ban has been in place since October 2018. On the time, the federal government of President Moon Jae-in mentioned it was imposing the ban to assist cool an “overheated, speculative” market.
The federal government’s transfer drew ire from the crypto neighborhood. In South Korea, solely bars, nightclubs, and licenced playing venues are topic to comparable VC funding restrictions.
The ministry defined that the modification “displays the altering world standing of the cryptoasset business.”
It added that the regulation now supplied a variety of safety methods for home crypto trade customers.
The ministry additionally spoke about the necessity to “foster” industries within the “digital asset ecosystem.” It made particular point out of corporations that work with blockchain and cryptography-related know-how.
This transfer, the federal government added, will permit crypto corporations with technological prowess and development potential to use for VC funding.
This, the ministry added, will put them on a good footing with different progressive corporations within the IT area. The SMEs Minister Han Seong-sook mentioned:
“We’ll foster a clear and accountable ecosystem. We’ll assist facilitate the movement of enterprise capital and the expansion of latest industries.”
Naver’s former CEO Han Seong-sook might change into Korea’s richest-ever ministerhttps://t.co/S8dHyOZGkl
— The Korea Instances (@koreatimescokr) July 2, 2025
A ‘Turning Level’ for the Crypto Trade
In the meantime, the South Korean media outlet Kyunghyang Video games reported that Kim Jae-jin, the Government Vice Chairman of the Digital Asset Change Affiliation (DAXA), has welcomed Seoul’s pivot towards progressive crypto regulation.
DAXA is an affiliation that includes the nation’s 5 greatest crypto exchanges. Kim
mentioned that the federal government’s plan to permit strange home companies to commerce crypto within the close to future might show a “turning level” for the nation’s crypto business.
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