The South Korean government is promoting policies to recognize cryptocurrency businesses as part of the startup ecosystem, opening up opportunities for financial and tax support for this sector.
The new proposal from the Ministry of SMEs and Startups will allow cryptocurrency companies to register as "innovative startups," supporting innovation and development in the cryptocurrency industry in South Korea.
MAIN CONTENT
South Korea proposes to remove cryptocurrency from the list of restricted industries, allowing cryptocurrency businesses to be recognized as startups.
This decision opens up tax benefits, funding, and capital guarantees for cryptocurrency startups.
The government under President Lee Jae Myung is strongly supporting cryptocurrency development with specific plans for Bitcoin ETFs and won-based stablecoins.
What changes does the new policy in South Korea bring to cryptocurrency businesses?
Policy changes will help cryptocurrency companies qualify for startup status for the first time, enjoying many tax benefits and state-supported capital, enhancing their competitive capacity in the market.
Previously, cryptocurrency businesses were considered restricted industries such as gambling and nightlife, and therefore did not receive benefits. For example, in 2018, Dunamu, the parent company of the cryptocurrency trading platform Upbit, lost its startup status and was fined about 24 billion won (approximately 18 million USD). Although they took the case to court, the decision did not change.
"Cryptocurrency businesses with innovative characteristics and a startup spirit based on new technology will be recognized as innovative startups," according to the official statement from the Ministry of SMEs and Startups in 2024.
— Ministry of SMEs and Startups of South Korea, 2024
What does this policy mean for the development of the cryptocurrency industry?
The expansion of startup business registration status for cryptocurrency companies facilitates access to funding and state support, promoting innovation and growth in the domestic cryptocurrency industry.
According to the Ministry, this is a step towards "reviving and expanding the startup ecosystem," leveraging technological advancement and attracting investment in the cryptocurrency sector. The government has also opened a consultation period for the business community until August 18, 2025, to finalize the draft.
How is President Lee Jae Myung's administration guiding cryptocurrency development?
Under the leadership of President Lee Jae Myung, the South Korean government is showing a clear and positive trend towards cryptocurrencies, with many comprehensive and specific promotion plans.
The government is promoting the approval of spot Bitcoin ETFs, developing stablecoins based on the won, and considering lifting the ban on cryptocurrency trading by financial institutions. These are important steps aimed at creating a healthy and professional development environment for this sector.
"We are committed to building a transparent and dynamic cryptocurrency ecosystem, helping South Korea become a global innovation hub," said President Lee Jae Myung at a press conference in May 2024.
— Lee Jae Myung, President of South Korea, May 2024
What are real examples of how large banks have reacted to cryptocurrency policies?
Not only the government, many large banks in South Korea have actively participated in the cryptocurrency market, testing stablecoin products and registering trademarks related to blockchain technology, showing an increasing interest and readiness in the traditional financial sector.
Frequently Asked Questions
1. How will the new policy affect cryptocurrency startups in South Korea?
The policy of expanding the startup business status for cryptocurrency allows startups to enjoy tax benefits, access capital, and enhance effective business development. (Ministry of SMEs and Startups, 2024)
2. Why were cryptocurrency businesses previously not supported by the government?
Due to current laws grouping cryptocurrencies with restricted industries such as gambling, they did not receive benefits, leading to disadvantages in taxes and capital.
3. What role does President Lee Jae Myung play in promoting cryptocurrency?
Mr. Lee has expressed a positive stance through plans to develop Bitcoin ETFs, won-based stablecoins, and lift the ban on cryptocurrency trading organizations starting from May 2024.
4. What is the government consulting the public about?
Consultations are underway regarding the draft to remove the cryptocurrency industry from the restricted list, officially allowing cryptocurrency businesses to register as innovative startups.
5. What are large South Korean banks doing to take advantage of the cryptocurrency trend?
Many banks are researching stablecoins and registering trademarks related to cryptocurrencies, preparing for service expansion in this field.
Source: https://tintucbitcoin.com/crypto-han-quoc-sap-duoc-phap-ly/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
