Key Takeaways:
- South Korea plans to reclassify crypto firms as venture companies, unlocking tax breaks and funding access.
- The proposal reflects a broader policy shift, with safeguards and a push to support digital asset industry growth.
- Investor optimism is rising, with financial sector stocks surging amid stablecoin-related developments.
South Korea’s Ministry of SMEs and Startups plans to lift restrictions that currently exclude crypto-related firms from being classified as venture businesses.
If approved, this move would grant crypto firms access to significant benefits such as tax breaks, funding opportunities, and regulatory support.
JUST IN: 🇰🇷 South Korea announces new rule requiring citizens to declare crypto income and overseas holdings.
— ChainDesk (@ChainDesk_) July 9, 2025
Currently, companies in the virtual asset sector are denied these advantages, but the ministry argues that recent legal safeguards and regulatory frameworks now justify their inclusion.
Public feedback on the proposed amendment will be accepted until August 18.
Recognizing crypto firms as venture companies could also allow existing ventures to expand into digital assets without losing their status.
Venture classification brings benefits like a 50% corporate tax cut for five years, a 75% reduction in real estate taxes, and up to 70% advertising discounts.
This proposal is part of a broader shift toward pro-crypto policies in South Korea.
The Bank of Korea recently paused its CBDC pilot to reevaluate its approach amid stablecoin developments.
President Lee Jae-myung’s administration is also pushing initiatives like a won-backed stablecoin.
Investor sentiment has risen, with major banks seeing share price gains after filing stablecoin-related trademarks.
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