South Korea Aims to Reverse 2018 Crypto Exclusion from Startup Benefits

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South Korea is reconsidering its 2018 classification of crypto firms by proposing to let virtual asset trading and brokerage providers register as official “venture companies”—a designation that grants tax breaks and government support.

Currently, the Special Act on Venture Businesses groups crypto businesses with pubs, nightclubs, and gambling venues, barring them from startup incentives. The new amendment would remove this restriction, aligning crypto firms with other innovative enterprises.

The change comes after Dunamu, Upbit’s parent company, lost its venture status in 2018 and faced an $18 million tax penalty. Despite legal efforts, the ruling stood—but the revised law could open doors for future crypto startups.