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South Korea lifts the order banning VC funding for cryptocurrency companies
South Korea has just lifted a seven-year ban, allowing cryptocurrency-related companies to access venture capital (VC) starting from September 16. The Ministry of SMEs and Startups stated that the amendment to the Decree implementing the Special Act on Promoting Startups has removed the classification of cryptocurrency trading and brokerage companies into the "restricted" group.
The ban has been in effect since 2018 under President Moon Jae-in to cool down the speculative market, which has previously caused many reactions in the cryptocurrency community. The government now asserts that the laws have mechanisms to protect users and that the changes reflect the new global position of the industry.
Minister Han Seong-sook emphasized that South Korea will build a transparent ecosystem to facilitate blockchain and cryptographic technology companies in raising funds, thereby promoting innovation. The DAXA Association calls this a "turning point" for the industry.