Venture Business Applications Now Open to Virtual Asset Companies

Virtual Asset Trading and Brokerage Removed from Venture Business Restrictions
"A Stepping Stone to Accelerate Deep-Tech Industry Growth"

The trading and brokerage of virtual assets will be removed from the list of industries restricted from being classified as venture businesses.

On September 9, the Ministry of SMEs and Startups announced that the Cabinet had approved a partial amendment to the Enforcement Decree of the Special Act on the Promotion of Venture Businesses, which includes this change. The amended decree will take effect on September 16.

This decision reflects changes in the global status of the virtual asset industry and the maturation of domestic user protection systems. The ministry explained that this move lays the foundation for the full-scale development of core deep-tech industries in the digital asset ecosystem, such as blockchain and cryptography.

The trading and brokerage of virtual assets were designated as restricted industries for venture businesses in 2018 due to social concerns over speculative bubbles at the time. While the industry itself is not illegal, the measure was taken based on a social consensus that fostering it as a venture business should be approached with caution.

However, seven years later, the virtual asset industry has emerged as an innovative sector in the global capital market and has established itself as a new pillar of financial order. Despite this transformation, there have been ongoing criticisms that classifying innovative industries in the same category as bars or gambling businesses and restricting their eligibility for venture business status runs counter to global trends and undermines the competitiveness of domestic industries.

The Ministry of SMEs and Startups believes that this measure will serve as a stepping stone to accelerate the growth of not only virtual asset trading and brokerage, but also core deep-tech industries that require advanced technological capabilities, such as blockchain, smart contracts, and cybersecurity.

Han Seong-sook, Minister of SMEs and Startups, stated, "This regulatory improvement is a step to secure future growth engines in line with global trends in the digital asset industry," adding, "We will focus our policy capabilities on creating a transparent and responsible ecosystem so that venture capital can flow smoothly and new industries can grow."