South Korea to lift restrictions on crypto venture capital business

The companies will be able to receive a 50% income tax rebate

South Korea will give crypto venture firms tax incentives

09.07.2025 - 16:10

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3 min

What’s new? South Korea’s Ministry of SMEs and Startups has proposed removing restrictions that prevent crypto firms from being classified as venture capital firms. The change in regulation will open up crypto venture capital firms to access tax incentives and financial support.

Ministry statement

What else is known? The ministry said the proposed amendment reflects a “shift in perception” of the digital asset industry and the creation of “legal and institutional safeguards” aimed at protecting users.

The officials noted the government’s focus on the development of the digital asset industry and emphasized that the introduction of crypto regulation last year has already provided legal protection for users, making it inappropriate to restrict venture-backed cryptocurrency activity.

The ministry will accept public comments on the proposal until August 18. The final effective date of the amendment has not yet been announced.

Venture capital status allows South Korean companies to access a number of government incentives. These include a 50% reduction in income tax for five years, a 75% reduction in commercial real estate purchase tax, and discounts on broadcast advertising of up to 70%.

South Korean authorities have unveiled a roadmap for approving spot crypto ETFs

Regulators also allow for the imminent legalization of won-based stablecoins

Earlier, it was reported that eight of South Korea’s largest commercial banks have begun preparations to launch their own won-pegged stablecoin.

Testing of the central bank’s digital currency (CBDC) was suspended last week. The pause is necessary for the government to clarify its stablecoin policy and explore ways to integrate digital won into the broader digital finance ecosystem.

A bill to legalize stablecoins, designed to spur the growth of the local crypto market, was introduced by the ruling party led by new President Lee Jae-myung in early June.

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