South Korea's Ministry of SMEs and Startups has proposed amending existing startup legislation to allow cryptocurrency trading and brokerage companies to qualify as "venture companies," which would give them access to government benefits.
Under the current Special Act on Promoting Venture Businesses, cryptocurrency companies were excluded from venture certification in 2018, classifying them alongside nightclubs and gambling facilities.
The change could reverse this restriction, allowing cryptocurrency companies to receive tax benefits and subsidies.
This move comes after previous disputes, such as the $18 million tax burden received by Upbit operator Dunamu after losing its venture company status in 2018. The company's legal challenge failed, but the new amendment could prevent similar cases.