South Korea’s crypto sector is on the cusp of a breakthrough, with the government proposing to recognize crypto firms as venture companies, potentially unlocking millions in subsidies and tax incentives. Crypto companies’ exclusion from the classification has hindered their access to tax breaks and financial support. Will the proposed amendment mark a turning point?
On Wednesday, South Korea announced plans to potentially allow crypto businesses to qualify as venture companies, paving the way for new opportunities. With a significant revision to existing digital asset legislation, South Korea’s Ministry of SMEs and Startups aims to foster crypto growth and innovation.
Significantly, this move would grant crypto firms access to government subsidies, tax benefits, and financial backing. The proposal aims to drive industry growth, ensure policy coherence, and encourage innovation in the crypto sector. The statement read,
Virtual asset businesses with innovative and entrepreneurial qualities, based on new technologies, will be newly recognized as venture businesses. Existing venture businesses will be able to pursue virtual asset-related businesses, which is expected to activate the venture ecosystem and expand its foundation. This is believed to promote the growth of the virtual asset industry.
Interestingly, this move comes following Parataxis Holdings’s groundbreaking announcement to launch South Korea’s inaugural Bitcoin Treasury company. As CoinGape reported recently, the investment firm plans to acquire a majority stake in biotech firm Bridge Bio, with Bitcoin serving as a reserve asset.
Over the past few months, the Seoul government has been taking significant steps to position itself as a leader in the global crypto space. The country’s agenda is twofold: to spearhead the crypto industry’s growth and to safeguard the interests of users and investors.
In March, the country introduced Anti-Money Laundering law amendments to tackle growing crypto threats and fraud. The government intends to address the growing concerns among crypto investors within the country.
Last month, the Seoul government proposed new rules to advance the use of stablecoins under the newly elected President Lee Jae-myung. This was followed by a group of banking giants joining hands to launch of won-backed stablecoin.
With the latest move, the ministry intends to establish “legal and institutional safeguards” to protect users. The government announced that the new rules indicate a shift in perception, as the “government is currently focusing on nurturing the digital asset industry.” South Korea’s ministry added that restricting the crypto industry is “inappropriate.”
Morgan Stanley, which manages $8 trillion in assets under management (AuM), plans to allow all…
Bitget has launched the fourth phase of its Early Hunter Airdrop, featuring BinanceLife (币安人生) and…
Fed Governor Chris Waller has again expressed support for additional Fed rate cuts. However, he…
Bitmine Immersion, the largest Ethereum treasury company, quietly added another 23,823 ETH to its total…
Bitcoin price has continued to trade below the $125,000 mark as the market undergoes a…
With the U.S. Securities and Exchange Commission's (SEC) final decision on Grayscale Solana ETF (GSOL)…