Bitgo Breaks Regulatory Barrier in South Korea with Hana and SK Telecom Backing

Bitgo has secured Virtual Asset Service Provider (VASP) registration in South Korea, clearing the way for its local operation to provide custody and management services for virtual assets. The company completed this feat on August 18, just one day before stricter entry requirements came into effect.

Bitgo's decision to establish a local presence in Korea from scratch, rather than acquiring an existing VASP-registered entity, demonstrates the company's commitment to serving Korean institutions and adhering to the country's regulatory framework. This process involved installing anti-money laundering (AML) controls, security systems, and operational infrastructure, as well as obtaining Information Security Management System certification.

Bitgo Korea will provide services to financial institutions, asset managers, corporations, and public-sector organizations. However, it will not be permitted to operate a retail cryptocurrency exchange or won-based trading platform.

The company's local operation has significant backing from Hana Financial Group and SK Telecom, with the former owning approximately 25% of Bitgo Korea and the latter controlling around 10%. These stakes date back to September 2024, following a 2023 digital asset custody agreement between Hana Bank and Bitgo.

Bitgo's registration is timely, given South Korea's recent tightening of VASP requirements. The new regulations impose stricter financial soundness, cybersecurity, staffing, internal control, and customer protection standards on applicants. Notably, they also widen scrutiny of major shareholders and corporate leadership.