South Korea has decided to amend regulations allowing cryptocurrency companies to achieve venture status and access tax benefits.
Legislative Update
In a cabinet meeting held on Tuesday, the Ministry of SMEs and Startups (MSS) finalized a partial amendment to the Enforcement Decree of the Venture Business Act. This update eliminates barriers for virtual asset trading and brokerage operations.
Benefits for Crypto Companies
Starting from September 16, crypto companies in South Korea can apply to be certified as venture businesses, which will provide them access to tax benefits and financial assistance. In 2018, South Korea banned crypto firms from certain benefits due to concerns about risky cryptocurrency trading. The ministry anticipates it will spur expansion in areas like virtual asset services, blockchain applications, smart contracts, and cybersecurity measures.
Growth of the Crypto Sector in South Korea
South Korea's cryptocurrency sector has grown due to a more supportive regulatory environment. This aligns with Seoul's efforts to integrate crypto into its economic fabric while maintaining caution regarding past issues.
Thus, the new legislative changes in South Korea may represent a significant step towards the development of the cryptocurrency sector, fostering its integration into the national economic structure.
