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South Korean cryptoasset<\/a>-related companies can now apply for venture capital (VC) funding after Seoul abolished a seven-year-old ban.<\/p>\n The South Korea newspaper Seoul Kyungjae reported that the Ministry of SMEs and Startups says the existing ban on crypto firms\u2019 VC funding will end on September 16.<\/p>\n The ministry said the State Council, South Korea\u2019s chief executive body and ministerial cabinet has signed off on the move.<\/p>\n The council has agreed to make a partial amendment to the Enforcement Decree of the Special Act on the Promotion of Venture Businesses.<\/p>\n The South Korean Minister of SMEs and Startups Han Seong-sook. (Source: Lee Jae-myung\/YouTube)<\/p>\n The amendment will effectively scrap the designation of crypto trading and brokerage-providing firms as \u201ca restricted venture business.\u201d<\/p>\n The ban has been in place since October 2018. At the time, the government of President Moon Jae-in said it was imposing the ban to help cool an \u201coverheated, speculative\u201d market.<\/p>\n The government\u2019s move drew ire from the crypto community. In South Korea, only bars, nightclubs, and licenced gambling venues are subject to similar VC investment restrictions.<\/p>\n The ministry explained that the amendment \u201creflects the changing global status of the cryptoasset industry.\u201d<\/p>\n It added that the law now provided a wide range of protection systems for domestic crypto exchange users.<\/p>\n The ministry also spoke about the need to \u201cfoster\u201d industries in the \u201cdigital asset ecosystem.\u201d It made special mention of companies that work with blockchain<\/a> and cryptography-related technology.<\/p>\n This move, the government added, will allow crypto companies with technological prowess and growth potential to apply for VC investment.<\/p>\n This, the ministry added, will put them on an even footing with other innovative companies in the IT space. The SMEs Minister Han Seong-sook said:<\/p>\n \u201cWe will foster a transparent and responsible ecosystem. We will help facilitate the flow of venture capital and the growth of new industries.\u201d<\/p>\n Meanwhile, the South Korean media outlet Kyunghyang Games reported that Kim Jae-jin, the Executive Vice Chairman of the Digital Asset Exchange Association (DAXA), has welcomed Seoul\u2019s pivot toward progressive crypto regulation.<\/p>\n DAXA is an association that comprises the nation\u2019s five biggest crypto exchanges<\/a>. Kimsaid that the government\u2019s plan to allow ordinary domestic corporations to trade crypto in the near future could prove a \u201cturning point\u201d for the country\u2019s crypto industry.<\/p>\n Read original story South Korea Lifts Ban on VC Funding for Crypto Companies<\/a> by Tim Alper<\/a> at Cryptonews.com<\/p>\n<\/p><\/div>\n