South Korea will lift restrictions on cryptocurrency companies obtaining venture capital company status, and will provide tax breaks and financing support.

ChainCatcher reported that South Korea will remove cryptocurrency trading and brokerage businesses from the list of industries prohibited from obtaining venture capital enterprise status. The Ministry of SMEs and Startups of South Korea announced on Tuesday that the Cabinet has approved amendments to the Enforcement Decree of the Special Act on the Promotion of Venture Businesses. These amendments will take effect on September 16, paving the way for cryptocurrency-related companies to obtain venture capital company certification, enabling them to better access funding and government support.

By lifting these restrictions, South Korea aims to foster blockchain and cryptocurrency technology as a deep tech sector within the broader digital asset ecosystem. South Korean Minister of Science and ICT, Lee Jong-ho, stated: "This is part of ensuring future growth engines that align with global trends. We will concentrate policy resources to ensure that venture capital flows smoothly into emerging industries and supports their development."