The reform reverses a 2018 policy that grouped crypto with gambling and nightlife businesses at the height of speculative mania. That decision pushed blockchain entrepreneurs to friendlier jurisdictions, even as Korea continued to develop one of the world’s most active retail crypto markets.
Competing for Asia’s Blockchain Capital
Officials now want to position Seoul alongside Hong Kong, Singapore, and Tokyo as a hub for blockchain innovation. Minister Han Seong-sook framed the change as part of Korea’s long-term growth strategy, saying the country must “align with global digital asset trends” and channel capital into new industries.
The decision means crypto startups can now tap into accelerators like TIPS and the K-Startup Grand Challenge, along with venture funding that had previously been off-limits. Analysts say this could jumpstart a new wave of blockchain companies headquartered in Korea, backed by both private and state-supported investors.
Signals of Rising Institutional Confidence
The policy shift comes as Korean firms are already experimenting with large-scale crypto initiatives. Bitplanet recently revealed plans for the nation’s first institutional-grade Bitcoin treasury, raising $40 million in initial capital. Regionally, funds like Sora Ventures are raising billions to accumulate digital assets, highlighting the accelerating competition across Asia.
