The Ministry of SMEs and Startups in South Korea begins granting venture certification for digital asset companies starting September 16.
Transition to New Status
This reform reverses a 2018 policy that classified cryptocurrencies as gambling and nightlife businesses. This decision pushed entrepreneurs to friendlier jurisdictions while Korea developed one of the world's most active retail crypto markets.
Competition in Asia
Officials now want to position Seoul alongside Hong Kong, Singapore, and Tokyo as a hub for blockchain innovation. Minister Han Seong-sook emphasized the need to 'align with global digital asset trends' and channel capital into new industries. Crypto startups can now access accelerators and venture funding that was previously off-limits.
Isolation and Integration in Crypto Industry
South Korea has not ignored cryptocurrencies since the ban was imposed. Regulators have rolled out licensing requirements for virtual asset service providers, drafted a stablecoin bill, and passed the Virtual Asset User Protection Act. The opening of venture certification could signal a new era for the Korean blockchain industry.
The gradual shift in South Korea towards a more open system for cryptocurrencies may represent an important step in the country becoming a leader in blockchain technologies.
