South Korea Crypto Sector Steps Up with New Venture Rules

South Korea is taking a big step for crypto. As reported by Cointelegraph, cryptocurrency companies can be seen as venture businesses. This means that they can get tax breaks, government fundings and also other benefits.

For so many years, South Korea was pretty careful with crypto. Regulators worried about price shakes and risky trading. Because of this, crypto companies could not really get venture status. This also stopped them from getting tax breaks and support from the government.

Now, the government has changed up the rules. The new law removes the rules for crypto businesses. This move is a part of President Lee Jae-myung’s plan to make South Korea a leader in digital finance.

What Crypto Firms Gain

Starting in September, crypto companies like exchanges and blockchain developers, can apply to get venture status. This gives them many advantages:

• Tax Cuts: Companies can pay less tax. And this can help them save more money.
• Government Loans and Grants: They can get more help for growth and new projects.
• R&D Funding: Companies can get money to improve the technology and products.
• Credit Support: Banks may give loans more easily when the government is backing.

These advantages can increase investment and also innovation. South Korea’s crypto market could grow pretty fast, with an estimation of $1.3 billion by 2026.

Keeping Investors Safe

At the same time, the government also wants to keep the investors safe. The Financial Services Commission put rules to stop risky lending. It banned the high interest loans and capped the interest rates at 20% per year. Also, crypto exchanges have to stop some of the lending services until the new rules are fully ready.

Minister Han Seong-sook said that the goal is to build a clear and fair system. This makes sure that the government support goes into real innovation and keeps the people safe from risks.

Why This Matters Worldwide

South Korea’s decision gives a pretty clear message. The country wants the crypto firms to grow safely and also legally. By giving rules and a helping hand, it could bring more international investors to South Korea. This could turn it into a center for digital finance, and other countries might follow too. Supporting crypto this way could help it grow safely all over the world.

Conclusion

Calling crypto firms as venture companies is quite a big step forward. Tax breaks, funding, and clearer rules gives the companies what they actually need to grow.

This move shows that South Korea is taking digital finance seriously. Investors and tech companies now have more reasons to focus on the country.

At the same time, the government is balancing the growth with safety. By moving pretty carefully, it helps innovation while also keeping the people safe. Everyone will surely be watching how this change is going to affect the crypto market in South Korea.

This decision could also inspire other countries, and proves that crypto can grow well with the correct rules and support.