South korea Opens Up Crypto Ventures
South Koreaās Ministry of SMEs and Startups has overturned a long-standing restriction that kept crypto ventures outside its startup ecosystem.
cryptocurrency-focused companies are now eligible for venture certifications beginning September 16th. This reversal revokes a decade-old ban instated in 2018.
Previously, crypto firms couldnāt enjoy conventional startupsā benefits because they were deemed overly speculative. But attitudes have now shifted towards embracing digital assets.
Pro-crypto sentiment took root after President Lee Jae-myung came to power in June.He prioritized digital finance reforms and laws backing innovations like stablecoins.
- The ban repeal was signaled in July, weeks after his election.
- This action aligns South Korea with global crypto trends demonstrating potential for innovation, securing capital, and boosting competitiveness.
- National Minister Han Seong-sook stated the move aims to foster a responsible crypto ecosystem encouraging seamless venture funding.
Anticipations are high for growth in associated fields like blockchain, contracts, and security since certified firms get tax benefits and financial backing.
Even though the market is expected to worth $1.3 billion by 2026, South Korea also emphasizes protecting investors. Recently refocused crypto discipline includes limiting loan profits exceeding 20% and suspending heavy-risk services.
