BitGo Korea wins VASP approval for institutional custody

BitGo Korea has secured acceptance of its Virtual Asset Service Provider registration in South Korea, becoming the first newly established Korean entity of a global digital asset company to do so under the country's regime.

The registration allows BitGo Korea to provide virtual asset custody and transfer services to institutional and enterprise clients. Rather than acquiring an existing registered provider, the company entered South Korea by setting up a local entity.

That is notable in a market where regulatory approval has been a major hurdle for digital asset businesses. South Korea requires virtual asset operators to register under rules tied to financial transaction reporting and anti-money laundering oversight.

As part of the registration process, BitGo Korea built local security, anti-money laundering, internal control and operational frameworks. Hana Financial Group and SK Telecom are strategic shareholders in the Korean business.

The move adds South Korea to the list of jurisdictions where BitGo operates through regulated entities, including the United States, Singapore, Germany and Dubai. It reflects the company's strategy of building locally supervised operations in major financial centres.

BitGo Korea is focused on institutional and enterprise customers rather than retail users. Its target clients include financial institutions, asset managers, corporates, public-sector organisations and other qualified market participants.

Chen Fang, Chief Executive Officer of BitGo Korea and Chief Revenue Officer of BitGo, said the company chose to establish a domestic operation and complete the local approval process itself.

"We chose to establish BitGo Korea locally and complete the VASP registration process directly because we believe serving Korean institutions requires a long-term commitment to the market and its regulatory framework," Fang said.

"This approval gives us the foundation to serve institutional clients in South Korea through a locally registered entity."

Local foothold

South Korea is one of Asia's more tightly regulated digital asset markets, with a framework that favours operators able to meet local compliance and security demands. By obtaining acceptance through a newly formed local company, BitGo is seeking to show that overseas groups can enter the market without relying on acquisitions.

The presence of Hana Financial Group and SK Telecom as shareholders gives BitGo Korea local ties across finance and telecommunications. Their ownership stakes were not disclosed, but their involvement suggests the business is seeking to anchor itself with established domestic groups as it builds services for institutions.

Abel Seow, Managing Director and Head of APAC Sales at BitGo, said local support and regulatory fit are central to demand from Korean institutions.

"Korean institutions are looking for infrastructure that combines institutional-grade security with local support and regulatory alignment," Seow said.

"We believe BitGo Korea gives us a local foundation to serve those institutions with the security, governance and infrastructure they expect."

Broader push

The Korean approval comes as digital asset firms continue to reshape their international operations around national licensing regimes. In recent years, regulators in several markets have pushed companies to establish more formal local entities, strengthen controls and separate customer services by jurisdiction.

For BitGo, which provides custody and other digital asset services, regulated status has become a key part of its pitch to institutional clients. It already maintains regulated entities including BitGo Bank & Trust in the US, a New York trust company, a licensed business in Singapore, a MiCAR-licensed entity in Germany and licensed operations in Dubai.

Mike Belshe, Chief Executive Officer and Co-founder of BitGo, linked the Korean registration to the company's broader international strategy.

"Digital assets are becoming part of the global financial infrastructure, and institutions need partners that can operate within the regulatory frameworks of the markets they serve," Belshe said.

"BitGo Korea's VASP registration is an important milestone in our strategy to build regulated digital asset infrastructure in key markets and strengthens our ability to support institutions globally."