TLDR
- BitGo Korea received VASP registration acceptance from the Korea Financial Intelligence Unit.
- The approval allows BitGo to offer crypto custody and transfer services to institutional and enterprise clients.
- BitGo established a new local entity instead of acquiring an existing registered South Korean provider.
- Hana Financial Group and SK Telecom are strategic shareholders in BitGo Korea.
- The expansion adds South Korea to BitGo’s regulated presence across the U.S., Singapore, Germany, and Dubai.
- BitGo shares jumped 16% on Wednesday and gained another 3.2% in pre-market trading.
BitGo has received approval to provide crypto custody services in South Korea through BitGo Korea. The move gives the NYSE-listed crypto custody company access to institutional clients in an active Asian digital asset market.
The Korea Financial Intelligence Unit accepted BitGo Korea’s Virtual Asset Service Provider registration. The approval allows the company to serve financial institutions, asset managers, corporations, public-sector groups, and other qualified clients. It does not permit exchange operations.
BitGo Builds Local Presence in South Korea
BitGo created BitGo Korea as a new local entity rather than buying an existing registered provider. The company said it built local security, anti-money laundering, internal control, and operating systems before completing registration.
Hana Financial Group and SK Telecom hold strategic stakes in BitGo Korea. BitGo did not disclose the size of those holdings. The two companies give the custody provider links to South Korea’s finance and telecommunications sectors.
South Korea regulates virtual asset providers under the Act on Reporting and Using Specified Financial Transaction Information. Under this system, companies report to KoFIU and receive registration acceptance instead of a traditional operating license.
The approval allows BitGo Korea to provide custody and transfer services for institutional and enterprise clients. It arrives as South Korea strengthens crypto rules, including wider Travel Rule requirements for registered providers and tighter controls around overseas virtual asset transfers.
Korean Crypto Rules Continue to Tighten
South Korea removed the one million won threshold for the crypto Travel Rule this month. Registered providers must now exchange transaction information for transfers of any value. Some new staffing, financial, infrastructure, and control requirements include a one-year grace period.
Regulators have also moved to limit major shareholder stakes in crypto exchanges. Separate changes to the Foreign Exchange Transactions Act require companies handling overseas crypto transfers to register with the Minister of Economy and Finance.
BitGo already operates regulated entities in the United States, Singapore, Germany, and Dubai. Its European business also launched a MiCAR-compliant crypto-as-a-service platform in June, widening its regulated product offering for institutional clients.
The company reported second-quarter results on August 12. Clients on its platform rose 26% from a year earlier, while normalized assets on the platform increased 31%. BitGo shares rose 16% on Wednesday as crypto prices climbed, then gained 3.2% in pre-market trading.
