South Korea Lifts Ban on VC Funding for Crypto Companies

South Korean cryptoasset -related companies can now apply for venture capital (VC) funding after Seoul abolished a seven-year-old ￰1￱ South Korea newspaper Seoul Kyungjae reported that the Ministry of SMEs and Startups says the existing ban on crypto firms’ VC funding will end on September ￰2￱ ministry said the State Council, South Korea’s chief executive body and ministerial cabinet has signed off on the ￰3￱ Funding for Crypto Firms: South Korea Scraps 2018 Ban The council has agreed to make a partial amendment to the Enforcement Decree of the Special Act on the Promotion of Venture ￰4￱ South Korean Minister of SMEs and Startups Han Seong-sook.

() The amendment will effectively scrap the designation of crypto trading and brokerage-providing firms as “a restricted venture business.” The ban has been in place since October ￰5￱ the time, the government of President Moon Jae-in said it was imposing the ban to help cool an “overheated, speculative” ￰6￱ government’s move drew ire from the crypto ￰7￱ South Korea, only bars, nightclubs, and licenced gambling venues are subject to similar VC investment ￰8￱ ministry explained that the amendment “reflects the changing global status of the cryptoasset industry.” It added that the law now provided a wide range of protection systems for domestic crypto exchange ￰9￱ ministry also spoke about the need to “foster” industries in the “digital asset ecosystem.” It made special mention of companies that work with blockchain and cryptography-related ￰10￱ move, the government added, will allow crypto companies with technological prowess and growth potential to apply for VC investment.

This, the ministry added, will put them on an even footing with other innovative companies in the IT ￰11￱ SMEs Minister Han Seong-sook said: “We will foster a transparent and responsible ￰12￱ will help facilitate the flow of venture capital and the growth of new industries.” Naver’s former CEO Han Seong-sook could become Korea’s richest-ever minister ￰0￱ — The Korea Times (@koreatimescokr) July 2, 2025 A ‘Turning Point’ for the Crypto Industry Meanwhile, the South Korean media outlet Kyunghyang Games reported that Kim Jae-jin, the Executive Vice Chairman of the Digital Asset Exchange Association (DAXA), has welcomed Seoul’s pivot toward progressive crypto ￰13￱ is an association that comprises the nation’s five biggest crypto ￰14￱ said that the government’s plan to allow ordinary domestic corporations to trade crypto in the near future could prove a “turning point” for the country’s crypto industry.