BitGo Korea has secured registration as a virtual asset service provider (VASP) from South Korea's Korea Financial Intelligence Unit (KoFIU), enabling the firm to offer services for storing and transferring cryptocurrencies in the country, according to The Korea Times.

The approval marks a significant move for BitGo, a United States-based digital asset custodian founded in 2013 that provides qualified custody and wallet infrastructure for institutional clients, as the firm works to establish itself in South Korea's burgeoning digital assets space. The Korea Times reported that BitGo Korea is the first foreign digital-asset entity to secure a VASP license in the country, and the approval means BitGo will be part of a select group of foreign-owned cryptocurrency custodians that have successfully passed through South Korea's stringent regulatory framework.

BitGo Korea Completes Key Regulatory Steps

Entering the Korean crypto market involves far more than registering a local entity. A series of conditions must be met, among them the ISMS certificate — an Information Security Management System accreditation for data-security standards — which is a necessary requirement before pursuing VASP registration.

BitGo Korea obtained a provisional ISMS certificate in June 2025 before moving ahead with its VASP registration process. The review by KoFIU, which operates under South Korea's Financial Services Commission, usually takes a couple of months — a timeline that aligned with BitGo Korea's expectations.

BitGo Korea has also received significant backing from some of South Korea's leading organizations. Hana Financial Group, one of the country's major financial groups, holds a 25% share in the company, while SK Telecom, South Korea's largest wireless carrier, holds a 10% stake. Both organizations became shareholders in September 2024. The partnership provides BitGo Korea with connections to both the financial and technological industries of South Korea.

South Korea Maintains Strict Crypto Rules

South Korea operates one of the most advanced regulatory regimes in Asia for virtual asset businesses. Crypto firms are required to fulfill anti-money laundering requirements and security standards before they can legally provide their services, a framework anchored by amendments to the Act on Reporting and Use of Specified Financial Transaction Information that took effect in March 2021 and made KoFIU registration mandatory. The Virtual Asset User Protection Act, in force since July 2024, has since added further investor-protection obligations for service providers.

The country has long emphasized real-name banking and investor protection, and these demands have made it hard for foreign crypto firms to operate there. Crypto custody in institutional settings has also remained limited relative to retail-level crypto trading. The Korean won regularly ranks among the most-traded fiat currencies in global crypto markets, with retail activity concentrated on local exchanges such as Upbit. Historically, many investors in South Korea have relied on those exchanges for crypto custody, and registration with BitGo Korea may go a long way toward helping facilitate dedicated custody services.

Hana Financial Could Open New Opportunities

Hana Financial Group's participation may prove important as South Korea begins to regulate its own laws for digital assets. The bank's investment does not necessarily imply the immediate creation of its own cryptocurrency-based services. Still, by holding a stake in a registered cryptocurrency custodian, the financial group gains a foothold in an emerging market.

Regulations around stablecoins and other classifications of digital assets are still under development in South Korea, with related draft legislation under discussion in the National Assembly. The licensing of such firms will give BitGo Korea an easier time adapting to any changes that may arise from these regulations.

For BitGo, the license provides a regulatory entry point into the South Korean market. It also gives the company an opportunity to enter an industry in South Korea where institutional demand for digital asset services is increasing and where custody options have so far lagged behind retail trading.