South Korea Lifts Crypto VC Ban, Opens Funding to Startups
South Korea’s Ministry of SMEs and Startups will lift its 2018 crypto VC ban on September 16, removing digital asset firms from the restricted enterprise list. Crypto startups can now apply for venture certification and access government-backed programs such as TIPS, the K-Startup Grand Challenge, risk-sharing investments, tax incentives and accelerator support. This follows earlier reforms, including the 2021 licensing system for virtual asset service providers and the upcoming July 2025 Virtual Asset User Protection Act. Private investors are already mobilizing new capital: Sora Ventures has raised $200 million toward a $1 billion Bitcoin fund, while Bitplanet secured $40 million for an institutional-grade Bitcoin treasury. Analysts say lifting the crypto VC ban will boost market liquidity, drive blockchain innovation and attract global investors, though they warn unchecked funding could spur speculation.
Bullish
Lifting the crypto VC ban removes major funding constraints. Venture capital infusions and government programs will boost liquidity and startup growth. Sora Ventures’ $200M and Bitplanet’s $40M Bitcoin initiatives signal strong institutional interest in BTC. The policy shift aligns with global regulatory trends and supports blockchain innovation. In the short term, increased venture capital could drive speculative buying of BTC. Over the long term, enhanced market infrastructure and oversight may sustain steady growth. Overall, the news is bullish for Bitcoin and Korea’s crypto sector.