What happened?
The South Korean government has decided to lift a ban that was preventing cryptoasset-related companies from applying for venture capital (VC) funding. This regulation change, which will take effect on the 16th of September, is due to a partial amendment to the Enforcement Decree of the Special Act on the Promotion of Venture Businesses. This means that industries like crypto trading and brokerage-providing firms will no longer be recognized as “restricted venture businesses”.
Who does this affect?
The abolished ban affects cryptoasset-related startups and businesses in South Korea who were previously barred from getting venture capital funding. This decision brings them on a level playing field with other innovative businesses in the IT sector. In addition, it impacts domestic crypto exchange users who now have access to a wide range of protection systems set up by the law.
Why does this matter?
This decision is significant for the market as it indicates a shift in South Korea’s stance towards the crypto industry and reflects the changing global status of the cryptoasset industry. Lifting the ban not only encourages the growth of new industries but also helps facilitate the flow of venture capital. Specifically, for South Korea’s digital asset ecosystem, this decision could prove crucial in helping to foster startups that work with blockchain and cryptography-related technology.