BitGo Korea becomes first foreign crypto firm to win Korean VASP registration
Key Takeaways
- •BitGo Korea is the first foreign company to receive virtual asset service provider status in South Korea.
- •The Financial Intelligence Unit approved the company’s registration, allowing it to offer transfers, custody and management services.
- •South Korea’s virtual asset licensing rules have required registration and compliance measures since 2021.
- •BitGo chose to establish a local company rather than acquire an existing Korean operator with a VASP license.
- •Hana Financial Group and SK Telecom hold 25 percent and 10 percent stakes in BitGo Korea, respectively.
BitGo Korea, the local unit of global digital asset infrastructure company BitGo, has received approval from South Korean regulators to operate as a virtual asset service provider in the country, becoming the first foreign company to obtain the status.
According to the company, the Financial Intelligence Unit under the Financial Services Commission approved BitGo Korea's VASP registration, allowing it to provide services including virtual asset transfers, custody and management.
The registration falls under a licensing regime in place since 2021, when revised rules under the Specified Financial Information Act required virtual asset businesses to register with the Financial Intelligence Unit and meet conditions including information-security certification, while exchanges serving the local market must also secure real-name deposit and withdrawal accounts with local banks.
South Korea is one of the world's most active retail crypto trading markets, with the won regularly among the most-traded fiat currencies for digital assets, and the sector has been dominated by domestic exchanges such as Upbit operator Dunamu and Bithumb.
Most foreign virtual asset companies seeking to operate in South Korea choose to acquire an existing Korean operator that already holds a VASP license rather than establish a new local entity. BitGo said it decided to set up a local company to bring its global technology and systems directly to the Korean market.
BitGo, founded in the United States in 2013, built its business on custody and wallet infrastructure for institutional clients, an area now covered by its Korean registration.
Hana Financial Group and SK Telecom are among BitGo Korea's major shareholders. The two companies acquired stakes of 25 percent and 10 percent, respectively, and formed strategic partnerships with BitGo.
"For a global company seeking to operate its business in Korea over the long term, it is essential to have its technology and systems validated within Korea's regulatory framework," said Chen Fang, CEO of BitGo Korea and chief revenue officer at BitGo.
"We believe BitGo’s VASP registration will go beyond being simply a case of an individual company entering Korea and serve as a model for establishing the standards of regulatory compliance and accountability for foreign companies entering the Korean market."
The approval marks a significant regulatory milestone for the company as it expands its presence in South Korea.
