South Korea Lifts Ban on VC Funding for Crypto Companies
South Korean cryptoasset-related firms can now apply for enterprise capital (VC) funding after Seoul abolished a seven-year-old ban.
The South Korea newspaper Seoul Kyungjae reported that the Ministry of SMEs and Startups says the prevailing ban on crypto companies’ VC funding will finish on September 16.
The ministry stated the State Council, South Korea’s chief govt physique and ministerial cupboard has signed off on the transfer.
VC Funding for Crypto Firms: South Korea Scraps 2018 Ban
The council has agreed to make a partial modification to the Enforcement Decree of the Special Act on the Promotion of Venture Businesses.
The modification will successfully scrap the designation of crypto buying and selling and brokerage-providing companies as “a restricted enterprise enterprise.”
The ban has been in place since October 2018. At the time, the federal government of President Moon Jae-in stated it was imposing the ban to assist cool an “overheated, speculative” market.
The authorities’s transfer drew ire from the crypto group. In South Korea, solely bars, nightclubs, and licenced playing venues are topic to related VC funding restrictions.
The ministry defined that the modification “displays the altering world standing of the cryptoasset trade.”
It added that the legislation now supplied a variety of safety techniques for home crypto trade customers.
The ministry additionally spoke about the necessity to “foster” industries within the “digital asset ecosystem.” It made particular point out of firms that work with blockchain and cryptography-related know-how.
This transfer, the federal government added, will permit crypto firms with technological prowess and progress potential to use for VC funding.
This, the ministry added, will put them on a good footing with different progressive firms within the IT area. The SMEs Minister Han Seong-sook stated:
“We will foster a clear and accountable ecosystem. We will assist facilitate the move of enterprise capital and the expansion of latest industries.”
A ‘Turning Point’ for the Crypto Industry
Meanwhile, the South Korean media outlet Kyunghyang Games reported that Kim Jae-jin, the Executive Vice Chairman of the Digital Asset Exchange Association (DAXA), has welcomed Seoul’s pivot towards progressive crypto regulation.
DAXA is an affiliation that contains the nation’s 5 largest crypto exchanges. Kim
stated that the federal government’s plan to permit strange home companies to commerce crypto within the close to future might show a “turning level” for the nation’s crypto trade.
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