Michaela
Summary: Why is South Korea reclassifying crypto firms as venture companies?
South Korea wants to support the growth of its digital asset sector. By giving crypto firms venture status, they can access tax breaks, subsidies, and state funding. This change reverses a 2018 policy that excluded them from such benefits.
South Korea has announced plans to reclassify cryptocurrency trading and brokerage firms as “venture companies,” a shift that would grant them access to government subsidies, tax benefits, and financial assistance. The move marks a reversal of the current policy, which has explicitly excluded blockchain-based firms from receiving venture certification since 2018.
In a notice published on July 7, South Korea’s Ministry of SMEs and Startups proposed a legislative amendment to its startup law that would extend venture company status to Virtual Asset Service Providers (VASPs). Under current regulations, blockchain-based crypto firms are classified alongside sectors such as gambling establishments and nightclubs, making them ineligible for state-backed support.
The proposed amendment is intended to formally recognize and support South Korea’s expanding digital asset industry. Achieving venture status would make crypto firms eligible for a variety of benefits, including tax incentives and improved access to government-backed funding programs.
“It is expected that the virtual asset business operators based on new technologies with innovation and business viability will be newly recognized as venture companies, and existing venture companies will also be able to promote virtual asset-related businesses, which will lead to the activation and expansion of the venture ecosystem and promote the fostering of the virtual asset industry,” the announcement wrote.
Global Recognition of Crypto Firms Could Boost Shibarium’s Growth
South Korea’s proposal to reclassify crypto firms as venture companies reflects a significant shift in the government’s stance, treating the digital asset sector not as a fringe activity, but as a legitimate part of the nation’s innovation economy. If enacted, the amendment could pave the way for greater investment, clearer regulations, and stronger institutional support for domestic crypto businesses.
This regulatory shift holds broader implications for global blockchain ecosystems, including Shiba Inu. Platforms like Shibarium thrive in environments where legal clarity and institutional backing support long-term development.
As Shibarium continues to expand its infrastructure, onboard developers, and enable cross-chain activity, the formal recognition of crypto firms by established governments like South Korea helps legitimize the sector on the world stage.
For SHIB holders and the wider community, this kind of progress contributes to a more stable and trustworthy ecosystem. It encourages responsible innovation while reinforcing the value of decentralized platforms that operate within a compliant, yet forward-thinking framework.
As more nations adopt similar approaches, projects like Shiba Inu stand to benefit from increased investor confidence, broader access to partnerships, and a smoother path toward global adoption.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
