Korea Lifts Venture Ban on Cryptocurrency Trading and Brokerage Firms

South Korea Recognizes Crypto Trading as Venture Business, Aligning With Global Trend (Yonhap)

SEOUL, Sept. 10 (Korea Bizwire) — South Korea will remove cryptocurrency trading and brokerage from its list of industries barred from receiving venture business status, signaling a shift in how the government views the digital asset sector.

The Ministry of SMEs and Startups said Tuesday that the Cabinet approved revisions to the Enforcement Decree of the Special Act on the Promotion of Venture Businesses. The changes, effective September 16, clear the way for crypto-related companies to be recognized as venture firms, giving them better access to capital and government support.

The move comes seven years after the government, alarmed by speculative frenzy and social concerns, classified crypto trading alongside bars and gambling as restricted industries in 2018. Officials said the reversal reflects both the maturation of global digital asset markets and the rollout of stronger investor protection measures at home.

Since 2021, South Korea has introduced mandatory registration for virtual asset service providers and, in 2024, enacted a user protection law that placed the industry under financial regulators’ supervision.

The ministry also cited international developments, including U.S. approval of spot Bitcoin ETFs in January 2024 and new legislation regulating stablecoins in July, as evidence of digital assets’ growing legitimacy.

By lifting the restrictions, Seoul aims to foster blockchain and cryptography as “deep tech” fields within the broader digital asset ecosystem. “This is part of securing future growth engines in line with global trends,” said Minister Han Sung-sook. “We will concentrate policy resources so that venture capital flows smoothly into new industries and helps them grow.”

Ashley Song (ashley@koreabizwire.com)