BitGo Korea has secured a virtual asset service provider (VASP) registration in South Korea, giving the company a regulatory foundation to offer digital asset custody services to institutional clients.

On Thursday, BitGo announced that the Korea Financial Intelligence Unit (KoFIU) accepted the VASP registration of its local entity, allowing BitGo Korea to provide virtual asset custody and transfer services to institutional and enterprise clients, according to the company's announcement.

The company said it established the local entity itself rather than acquiring an existing registered provider, and that it has built security, anti-money laundering (AML), internal control and operational frameworks tailored to South Korean requirements.

Hana Financial Group, one of South Korea's major financial holding companies, and SK Telecom, the country's largest wireless carrier, are strategic shareholders in BitGo Korea. Their involvement links the venture to established domestic players in a market where crypto trading has been concentrated among local exchanges such as Upbit and Bithumb, and where global digital asset companies have rarely obtained local registration by building a new entity from the ground up.

The registration was accepted on Tuesday, two days before South Korea's stricter entry requirements for VASPs took effect on Thursday, according to Yonhap News Agency. According to the country's Financial Services Commission, the updated rules expand scrutiny of shareholders and require applicants to satisfy financial soundness, cybersecurity, internal control and AML standards.

In South Korea, VASP registration is administered by KoFIU, which operates under the Financial Services Commission, the country's top financial regulator, and is required for businesses offering virtual asset services such as custody, transfers and trading under the Act on the Report and Use of Specified Financial Transaction Information, the nation's principal anti-money laundering statute. When the reporting regime first took full effect in September 2021, dozens of smaller exchanges halted operations after failing to secure registration, consolidating the market around a handful of domestic players.

South Korea has ranked among the world's most active crypto markets by trading volume, with participation long dominated by retail investors. Institutional access has only begun to open up: in 2025, regulators started a pilot program allowing listed companies and nonprofits to open won-denominated corporate accounts for crypto trading, while discussions over permitting spot crypto exchange-traded funds continue. Institutional-grade custody of the kind BitGo Korea now offers has been comparatively scarce, as local banks' involvement in the sector has largely centered on providing real-name accounts for exchanges.

BitGo, founded in 2013 and headquartered in the United States, is a digital asset custody specialist known for its multi-signature wallet security technology and its focus on institutional clients.

BitGo did not immediately respond to Cointelegraph's request for additional details.

Source: Cointelegraph