South Korea to recognize crypto firms as venture companies
The post South Korea to recognize crypto firms as venture companies appeared on BitcoinEthereumNews.com. South Korean regulators have decided to lift a nearly decade-long ban that barred cryptocurrency-focused businesses from qualifying as venture companies. Summary South Korea’s Ministry of SMEs and Startups has approved a revision to the Venture Business Act. Crypto firms will be eligible for venture certification starting September 16. The policy change ends a ban that has been in place since 2018. Since 2018, cryptocurrency companies operating in South Korea have not been allowed to be recognized as venture firms due to concerns over the speculative nature of the market at the time. As a result, these entities have been shut out from the range of benefits enjoyed by traditional firms operating within the country’s broader startup ecosystem. However, on Tuesday, that door was finally reopened as South Korea’s Ministry of SMEs and Startups passed a partial revision to the Enforcement Decree of the Special Act on Fostering Venture Businesses to bring digital asset businesses in line with other innovative sectors. Starting Sep. 16, crypto businesses would be able to apply for a venture certification under the same conditions as traditional firms. Over the last couple of years, South Korea has softened its stance on digital assets, and instead of restricting the booming market, regulators in the country have unified under the notion that cryptocurrencies have the potential to drive innovation, attract global capital, and strengthen the nation’s competitiveness in next-generation technologies. Much of this momentum has picked up pace after pro-crypto President Lee Jae-myung was elected in June, whose administration has since prioritized digital finance reforms and pushed forward legislation supporting innovations like stablecoins. In fact, the decision to revise the Venture Business Act was first hinted at in July, less than a month after Lee’s election. According to regulators, once the ban is fully lifted, related sectors such as…
The post South Korea to recognize crypto firms as venture companies appeared on BitcoinEthereumNews.com.
South Korean regulators have decided to lift a nearly decade-long ban that barred cryptocurrency-focused businesses from qualifying as venture companies. Summary South Korea’s Ministry of SMEs and Startups has approved a revision to the Venture Business Act. Crypto firms will be eligible for venture certification starting September 16. The policy change ends a ban that has been in place since 2018. Since 2018, cryptocurrency companies operating in South Korea have not been allowed to be recognized as venture firms due to concerns over the speculative nature of the market at the time. As a result, these entities have been shut out from the range of benefits enjoyed by traditional firms operating within the country’s broader startup ecosystem. However, on Tuesday, that door was finally reopened as South Korea’s Ministry of SMEs and Startups passed a partial revision to the Enforcement Decree of the Special Act on Fostering Venture Businesses to bring digital asset businesses in line with other innovative sectors. Starting Sep. 16, crypto businesses would be able to apply for a venture certification under the same conditions as traditional firms. Over the last couple of years, South Korea has softened its stance on digital assets, and instead of restricting the booming market, regulators in the country have unified under the notion that cryptocurrencies have the potential to drive innovation, attract global capital, and strengthen the nation’s competitiveness in next-generation technologies. Much of this momentum has picked up pace after pro-crypto President Lee Jae-myung was elected in June, whose administration has since prioritized digital finance reforms and pushed forward legislation supporting innovations like stablecoins. In fact, the decision to revise the Venture Business Act was first hinted at in July, less than a month after Lee’s election. According to regulators, once the ban is fully lifted, related sectors such as…
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