BitGo Secures First Direct Crypto License for Foreign Firm in South Korea
BitGo has become the first foreign-founded crypto custodian to secure direct VASP approval in South Korea, allowing it to provide virtual asset custody and transfer services to institutional clients in the country.
The company's BitGo Korea subsidiary received its registration from the Korea Financial Intelligence Unit on August 18, just before stricter VASP registration and anti-money-laundering requirements took effect two days later. This new regulatory framework makes it harder for other foreign firms to enter the market.
BitGo built a strong local presence by partnering with Hana Financial Group and SK Telecom, which acquired a combined 35% stake in BitGo Korea. The company's co-founder and CEO Mike Belshe has said this structure provides Korean regulators with confidence that BitGo can meet their expectations for local accountability.
The approval is narrow, focusing on institutional clients, not retail traders. This targeted approach reflects the South Korean government's cautious approach to regulating cryptocurrencies. Despite its popularity among retail investors, Korea's crypto market is still subject to strict regulations.