BitGo Secures VASP Registration in South Korea, Expanding Institutional Custody Competition

BitGo Korea has secured Virtual Asset Service Provider (VASP) registration from South Korea's Financial Intelligence Unit (FIU), marking a significant milestone for the company and its entry into the Korean market.

This approval makes BitGo Korea the first Korean-based subsidiary of a foreign cryptocurrency firm to be registered directly as a VASP, rather than purchasing an existing licensed operator. By registering with the FIU, BitGo has created its own regulated infrastructure in South Korea, demonstrating its long-term commitment to the country's regulatory framework.

The approval expands institutional custody competition and shows that foreign crypto firms can enter South Korea directly by meeting domestic requirements. Chen Fang, BitGo Korea CEO and Chief Revenue Officer, stated that this approach reflects a 'long-term commitment' to Korea's regulatory framework.

Meanwhile, another exchange dispute highlights the challenges of compliance in offshore crypto transfers. HTX has been under scrutiny over address poisoning, and its internal review found no official accounts involved in reported cases. However, several cases emerged after Kraken froze customer funds, with affected balances reaching roughly $4.2 million.

South Korea is enhancing controls on the flow of funds offshore from domestically regulated entities, requiring sender and recipient information for domestic VASP transfers regardless of transaction size. Offshore exchanges and self-hosted wallets are subject to further verification requirements for user identities, with most transfers requiring same-person ownership.