Key control
In an attempt to strengthen its cryptographic sector, South Korea will allow bag exchanges and runners to request risk certification as of September 16. The reform will open doors to tax incentives and funds.
South Korea is opening new doors for its cryptographic sector.
In a movement that could remodel industry growth, the Ministry of SME and Startups has approved reviews to Venture Business Law. This will clear the way for negotiation and digital asset companies to qualify as risk companies.
South Korea lifts the prohibition of crypto
The policy change, announced during a cabinet meeting on September 9, gives access to long -standing cryptographic companies to tax incentives and financial support, according to the medium of the local Koreatechdesk departure. The review will enter into force on September 16, when cryptographic companies in South Korea, for the first time in years, may request risk certification.
The designation offers access to tax incentives, investment opportunities and financial support backed by the State, placing new virtual asset companies in the same position as other high growth industries.
The above restrictions date back to October 2018, when regulators grouped cryptographic in the same category as gambling businesses and nightlife in the midst of a speculative trade wave and public skepticism.
At that time, officials argued that the measure was necessary to protect consumers. However, critics argued that he placed South Korea at a disadvantage compared to global peers. In fact, meNdustry voices have long argued that the prohibition suffocated innovation and undermined the position of the nation in the development of Fintech and Blockchain.
How will things change?
Since then, the global regulatory environment has changed considerably, especially in the United States. This has introduced new rules for Stablecoins and has allowed the main cryptographic companies to be publicly listed.
The Ministry of SME and new companies in South Korea now expects updated policy to accelerate growth in virtual asset trade, brokerage services, blockchain applications, intelligent contracts and cyber security technologies.
Minister Han Seong-Sook described the measure as a “regulatory improvement” designed to ensure the “impulse of future growth in line with the global tendency of the digital asset industry.”
She added more,
“We will focus our political capabilities on creating a transparent and responsible ecosystem to facilitate the soft entry of risk capital and the growth of new industries.”
What is more?
The reversal of the South Korean policy is produced as part of a broader global career to position itself as a leading cryptographic center, with the United States establishing rhythm through regulatory clarity and institutional adoption.
And yet, even when the door opens for growth backed by companies, the national exchange market tells a history of unequal fortunes.
Industry giants such as Dunamu and Bithumb are thriving, pursuing Opi and take advantage of investors’ confidence. Everything, while smaller rivals, such as Coinone, struggle to stay afloat under increasing regulatory and financial pressures.
With the UPBIT and Bithumb in charge of 96% of the market share, the new rules can boost innovation. However, they could also deepen the division between established leaders and the weakest competitors who browse the cryptographic panorama driven by the South Korean scale.
