BitGo Secures Direct VASP Access in South Korea as Offshore Crypto Rules Tighten

BitGo has gained direct access to South Korea's Virtual Asset Service Provider (VASP) registration, making it the first foreign cryptocurrency firm to do so. The approval was granted by the Financial Intelligence Unit (FIU), allowing BitGo Korea to operate within the local regulatory framework.

The VASP registration is significant as it allows BitGo to create its own regulated infrastructure in South Korea, rather than purchasing an existing licensed operator. Chen Fang, BitGo Korea CEO and Chief Revenue Officer, stated that this approach reflects a 'long-term commitment' to Korea's regulatory framework.

Meanwhile, HTX exchange has been facing issues with address poisoning, with Kraken freezing customer funds worth around $4.2 million. The incident highlights the complexities of compliance systems and how they can affect ordinary fund transfers.

The South Korean government is tightening controls on offshore crypto transfers, requiring sender and recipient information for transactions over 10 million won. This move aims to create a clearer divide between domestic and offshore access, with registered firms like BitGo Korea operating within the local framework while unregistered counterparties face greater scrutiny.