Korea Digital Asset (KODA), First Virtual Asset Service Provider to Obtain 'Venture Company Confirmation'

A company registered as a virtual asset service provider has become the first domestic case to be officially confirmed as a venture company by the Ministry of SMEs and Startups.

The digital asset custody company Korea Digital Asset (KODA, CEO Jo Jin-seok, hereinafter KODA), established as a joint venture between global blockchain venture capital Hashed (CEO Kim Seo-joon) and KB Kookmin Bank, announced on the 10th that it had obtained the Ministry's 'venture company confirmation' on the 9th, the first for a virtual asset service provider.

Until now, even though virtual asset service providers did not legally fall under the prohibited 'blockchain-based crypto asset trading and brokerage business' for venture certification, they were practically blocked from venture certification simply because they were registered as virtual asset service providers with the Financial Intelligence Unit (FIU), with confirmations being rejected or already obtained confirmations being revoked. In this situation, KODA has obtained venture company confirmation for the first time as a virtual asset service provider.

This achievement is significant as the first beneficiary case following the recent revision of the Enforcement Decree of the Special Act on Fostering Venture Businesses promoted by the Ministry. The government revised the decree through a Cabinet meeting on the 9th, making it possible from the 16th for the previously restricted 'blockchain-based crypto asset trading and brokerage business' to also obtain venture company confirmation.

KODA CEO Jo Jin-seok said, "This venture company confirmation shows that perceptions that negatively categorized the digital asset industry alongside businesses such as entertainment business and casino business are clearly changing." He added, "I hope that, through this, various digital asset companies will actively utilize venture company policies such as tax benefits, policy finance, and research and development (R&D) support to achieve results that lead to fundraising and job creation."

He went on to say, "I also hope that the government's regulatory rationalization will be carried out rapidly in line with global standards so that Korea can once again advance as a digital asset hub."