Lifting the Ban on Crypto VC Funding in South Korea
- Ban on crypto VC funding lifted by the South Korean government.
- Minister Han Seong-sook leads regulatory changes.
- Potential blockchain growth and increased VC investments.
South Korea has lifted its seven-year ban on venture capital funding for crypto companies as of September 16, 2025, following approvals from the Ministry of SMEs and Startups and the Cabinet.
The policy reversal is expected to boost investment in Korea’s crypto sector, driving growth and innovation in blockchain technologies and aligning its regulatory framework with global standards.
South Korea has officially lifted a seven-year ban on venture capital funding for crypto companies. The policy change follows approval from the Ministry of SMEs and Startups and the Cabinet, effective September 16, 2025.
Minister Han Seong-sook, a key figure in this decision, emphasized the change could foster growth in crypto and blockchain technologies. This move allows firms to access venture certification, tax breaks, and government grants.
The immediate effects are expected to alter the landscape for crypto startups by providing new funding opportunities. Industries linked to Ethereum, Bitcoin, and local blockchain networks may see substantial benefits.
This regulatory shift enables institutions to legally participate in digital asset investments, potentially increasing involvement from major venture and tech funds. The nation’s revenue is predicted to hit $1.1–1.3 billion by 2025.
The decision marks a pivotal moment for the Korean digital asset ecosystem, aligning with global trends. Historical instances show that similar actions have significantly enhanced VC inflows and technological expansion in other jurisdictions.
The regulatory change could stimulate growth in crypto and blockchain technologies.
Expert opinions suggest potential outcomes include increased on-chain activity and new opportunities for DeFi protocols and Layer 1/Layer 2 assets. This could enhance global leadership in crypto investments, paving the way for future developments.
