If innovation were a bowl of kimchi, South Korea just realized it’s been keeping a perfectly fine serving locked in the fridge behind the pickled radishes of regulation 🤷. The governmental boffins, presumably after misplacing their “How to Be Trendy in the 21st Century” pamphlet, are now reclassifying cryptocurrency outfits as—wait for it—venture companies. This magical incantation grants them long-coveted access to tax breaks, juicy financing, and other government goodies usually reserved for non-scandalous industries. It’s the digital equivalent of finally being allowed to sit at the grown-ups’ table. 🍽️
New Policy Shift for Crypto Firms (And Other Magical Creatures)
In a notice only slightly less exciting than a wizard’s proclamation (but with more legalese), the Ministry of SMEs and Startups cheerfully declared its intention to give the “Act on Special Measures for the Promotion of Venture Businesses” a much-needed oil change. The shiny upgrade? Virtual asset trading shops and crypto brokerages can apply for venture company certification—the passport to tax incentives, creative financing plans, and development support, minus the need for a letter from Hogwarts.
The Ministry, with all the optimism of a startup pitch deck, stated,
“The recognition of innovative, business-viable Virtual Asset Service Providers (VASPs) as venture companies … will revitalize and broaden the venture ecosystem and accelerate the growth of the virtual asset industry.”
(Translation: We’d like some of the blockchain hype, please, and fewer techies in hoodies glaring at our tax department.)
Correcting a Years-Old Policy Stance (Better Late Than Never)
Since 2018, crypto and blockchain businesses have been lumped together with nightclubs, gambling joints, and other… let’s call them “adventurous” sectors. Venture status? Ha! Not unless your business plan included a glitterball and an Elvis impersonator. Dunamu—the parent of Upbit—managed to have their venture status vanquished, gaining a tragic $18 million gift in extra corporate taxes. Their court battle went about as well as a hamster in a dog park. Now, with much backpedaling, the Ministry acknowledges perhaps the future isn’t just about karaoke bars and plastic surgery clinics.
A Strategic Bid to Strengthen the Digital Economy (or, “How We Learned to Stop Worrying and Love the Blockchain”)
This isn’t just about keeping up with the digital Joneses. South Korea already enjoys 5G coverage thicker than spam, and financial apps are basically a birthright. The reclassification is the latest chess move to lure blockchain sorcerers and fintech wizards onto home turf, and perhaps—whisper it—create unicorns that don’t just sell fried chicken.
The whole spectacle has President Lee Jae Myung’s fingerprints all over it. Mr. Lee—whose crypto-friendly campaign may have involved less handshaking and more wallet app scans—wants new rules, won-based stablecoins, and ETFs (for those who fancy their assets ETF-flavored). Parliament’s gearing up to rewrite the digital playbook, presumably with fewer coffee stains than the last one.
Industry Momentum and Legislative Backing (Hold on to Your Wallet Apps!)
Since Lee appeared like a breath of fresh digital air last month, banks and payment companies have started trademarking stablecoin ticker symbols with the kind of haste usually reserved for festival concert tickets. Meanwhile, South Korea’s Financial Services Commission is tiptoeing towards letting big-money institutions play with crypto on weekdays, not just weekends or at the company barbecue.
With new perks for crypto businesses, a deluge of venture capital beckons. Or at least, that’s the plan—assuming the blockchain crowd doesn’t all move somewhere warmer with fewer government forms. 🥶💸
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2025-07-09 20:07