South Korea Lifts Longstanding Ban On Crypto Venture Capital

After a cautious summer, capital flows into crypto are cooling. In August, funding for crypto protocols fell 30%, reaching nearly $2 billion, down from July's $2.67 billion, as per DeFiLlama.

Funding Dips Yet Quarter Gains

Third-quarter totals reached $4.57 billion in two months, surpassing Q2’s $4.54 billion.
Monthly raises have decreased since early 2022 peaks of about $7 billion but show intermittent spikes in 2025.

Investor Focus Shifts To Existing Projects

Funds are shifting from new-chain launches to teams building on existing projects.
New launches see lower valuations, resulting in quieter price moves post-listing.

DeFi remains attractive with investments in infrastructure and trading platforms, alongside stablecoin infrastructure like Rain's $58 million raise and payment solutions such as OrangeX's $20 million Series B.

South Korea Opens VC Doors

South Korea lifted a VC funding ban on September 16, previously labeling exchanges as “restricted venture businesses.”
The Virtual Asset User Protection Act introduced safeguards that aided this regulatory shift.

Government support aims to foster a transparent ecosystem, potentially boosting local firms by attracting new VC investments focused on blockchain and cryptography.