South Korea has lifted its seven-year ban on venture capital funding for cryptocurrency companies. This policy shift opens new prospects for attracting investments and accelerating innovation in the industry.
Lift of Ban
The South Korean government has officially lifted its seven-year ban on venture capital funding for crypto companies, effective September 16, 2025. Now, cryptocurrency trading and brokerage firms can access VC funding and government support.
Support and Investment
This decision, led by the Ministry of SMEs and Startups, marks an important policy shift aimed at aligning with global market trends. Minister Han Sung-sook emphasizes the need to cultivate future growth sectors. The lifting of the ban allows crypto companies to gain venture status, unlocking opportunities for grants and subsidies previously withheld.
Future of the Crypto Industry
South Korea's revised stance enables public and private investment flow, fostering growth in areas such as blockchain. The decree promises to benefit Layer 1/2 protocols, exchanges, and other projects within Ethereum and Bitcoin ecosystems. Historical examples of asset bubble formation following similar global regulatory changes highlight the potential for industry expansion.
The lifting of the ban on venture funding in South Korea is a significant step in supporting and developing the crypto industry, which may lead to increased investments and technological innovations.
