South Korea lifts ban on VC funding for crypto companies, effective September 16

ChainCatcher news, according to Cryptonews, the South Korean Ministry of SMEs and Startups announced that the State Council has approved partial amendments to the "Special Act on the Promotion of Risk Enterprises Implementation Order," lifting the restrictive designation on virtual asset trading and brokerage companies. Starting from September 16, crypto-related companies can apply for venture capital funding. This ban was established in 2018 to curb overheating speculation and has been in place for nearly seven years.

The ministry stated that this move reflects the changing global status of the crypto industry and promotes capital inflow and new industry growth within the existing user protection framework. The DAXA, the industry association of South Korea's five major exchanges, welcomed this, stating that the policy shift could become a "turning point" for industry development.