South Korea’s Game-Changer: Crypto Firms Now Officially Venture Companies with Major Gov’t Perks

Seoul just handed crypto startups the golden ticket—legitimacy with benefits. Starting today, blockchain ventures get the same tax breaks and R&D subsidies as biotech and AI firms. No more regulatory purgatory.

The fine print? Companies must prove real-world utility beyond speculative trading. Korea’s Financial Services Commission isn’t handing out blank checks—unless you count the inevitable loopholes fintech lawyers are already drafting.

Market watchers call it a strategic play: lure Web3 talent away from Singapore and Dubai while traditional VCs still think ‘crypto’ means Ponzi schemes. Jokes on them—the 20% quarterly growth in Korean crypto jobs isn’t fictional.

One bureaucrat muttered about ‘controlled disruption.’ Translation: we want the innovation without the Binance-sized headaches. Good luck with that.

Proposed Law Aims to Legitimize South Korea’s Digital Asset Sector

The proposed revision aims to reverse that, potentially legitimizing the country’s growing digital asset sector.

Companies with venture status in South Korea benefit from a range of perks, including tax reductions and easier access to state-backed financing.

These benefits were previously stripped from crypto firms, notably in the case of Dunamu, the operator of Upbit, which faced an $18 million corporate tax bill after its venture certification was revoked.

Dunamu’s attempt to contest the ruling in court failed.

In the new proposal, the ministry said that recognizing “innovative, business-viable” crypto service providers as venture firms WOULD broaden the country’s venture ecosystem and help accelerate virtual asset industry growth.

The shift comes as President Lee Jae Myung, who took office last month, ramps up support for the digital finance sector.

Lee has been vocal about lifting restrictions on crypto ETFs and institutional trading.

He has also backed legislative efforts to introduce Korean won-based stablecoins, a MOVE that has already triggered a wave of trademark filings by major financial institutions.

The proposed reclassification signals a broader change in how South Korea views its crypto industry, no longer as a speculative outlier but as a sector worth integrating into its formal innovation economy.

If adopted, the amendment could open the door to increased investment and regulatory clarity for domestic crypto firms.

Korea’s FSC Eyes Spot Crypto ETFs

As reported, South Korea’s Financial Services Commission (FSC) has presented a roadmap to the Presidential Committee on Policy Planning proposing the approval of spot crypto ETFs.

The move came after President Lee Jae-myung’s campaign promise to modernize digital asset rules and boost opportunities for younger investors.

South Korea’s FSC has submitted a roadmap outlining a potential framework to approve spot cryptocurrency ETFs.#SouthKorea #ETFshttps://t.co/A0gQDo2y0V

The plan outlines implementation measures for spot crypto ETFs and regulatory frameworks for won-based stablecoins in the second half of 2025.

Historically, the FSC blocked crypto ETFs over volatility and financial risk concerns, maintaining that cryptocurrencies were unsuitable as underlying assets.