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BitGo Korea secures VASP registration for institutional crypto custody
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BitGo Korea has secured a virtual asset service provider (VASP) registration in South Korea, paving the way for institutional digital asset custody services. The company announced the approval on Thursday, with the Korea Financial Intelligence Unit accepting the local entity's registration on Tuesday, just before stricter VASP rules took effect. This makes BitGo Korea one of the few registered custody providers in the country.
The registration was accepted via a newly established local entity rather than an acquisition of an existing provider. BitGo said it built security, anti-money laundering, internal control, and operational frameworks tailored to South Korean requirements. Hana Financial Group and SK Telecom are strategic shareholders in BitGo Korea.
The timing is notable, as South Korea's Financial Services Commission updated its VASP entry rules to expand shareholder scrutiny and require applicants to meet financial soundness, cybersecurity, internal control, and AML standards. These stricter requirements took effect on Thursday, two days after BitGo Korea's acceptance. By registering early, BitGo has secured its position under the previous regulatory threshold.
This approval allows BitGo to offer corporate clients safe storage and transfer of digital assets within a regulated framework. South Korea is a significant digital asset market, making this a strategic foothold for the company. It also strengthens the country's institutional crypto infrastructure, potentially attracting more professional investors.
The company has faced financial challenges related to its growth strategy. BitGo reported a $19 million loss in the second quarter, despite an 80% revenue surge to $4.3 billion. This suggests the firm is prioritizing long-term regulatory expansion over short-term profitability.
BitGo did not immediately respond to requests for additional details. Going forward, the license could help BitGo compete with local and global custodians as institutional interest in crypto assets grows. The company's next steps will likely involve onboarding institutional clients and expanding services in the region.
