South Korea Ends 2018 Ban on VC Investments in Crypto Firms
The post South Korea Ends 2018 Ban on VC Investments in Crypto Firms appeared on BitcoinEthereumNews.com.
South Korea has lifted its 2018 ban that barred crypto-related companies from receiving venture capital investments. This is a major decision that could position the nation as a leader in blockchain investment across Asia. South Korea Lifts Crypto VC Investment Ban After 7 Years Seoul Economic Daily reported that South Korea’s Ministry of SMEs and Startups (MSS) confirmed Cabinet approval of a revised enforcement decree that removes digital asset trading and brokerage from its list of restricted industries. Effective September 16, crypto startups can now apply for venture certification under the same rules as other high-growth firms. The ban was previously imposed in October 2018. This came at a time of speculative excess and widespread public concern. Regulators lumped crypto ventures alongside gambling and nightlife businesses. Industry leaders criticized the policy as out of step with international markets. They also claimed it damaged the country’s competitiveness in fintech and blockchain. In the years since, there has been a change in the global crypto ecosystem. For example, the U.S. created new rules for stablecoins and allowed big cryptocurrency companies to go public. Meanwhile, South Korea also introduced a stablecoin bill. This initiative aims to clarify stablecoins and establish rules for them in the country. Furthermore, in 2021, the country started a licensing system for virtual asset service providers. In July 2025, they also enacted the Virtual Asset User Protection Act. These actions established rules to protect deposits and closely monitor unfair trading practices. Korea’s New Push for Venture Capital in Digital Assets The decision to open venture certification to crypto businesses shows that the country places digital assets in high regard. By doing this, South Korea is providing access to government-backed incentives, financing programs, and risk capital. Minister Han Seong-sook emphasized that the reform was designed to align Korea with global…
