South Korea Tightens Crypto Exchange Registration Standards

South Korea's Financial Services Commission has implemented stricter VASP (Virtual Asset Service Provider) registration standards, effective August 20, 2026. The new rules require major-shareholder review, a 200 percent debt-ratio cap, and tighter fit-and-proper tests for crypto exchanges operating in the country.

BitGo Korea was the first foreign-owned subsidiary to secure direct VASP status on August 18, just two days before the stricter standards took effect. The new requirements apply to registration renewals as well as first-time applicants, with a focus on debt ratio, governance qualifications, and shareholder screening.

The Financial Services Commission has given existing VASPs up to one additional year to meet related staffing, infrastructure, and internal-control requirements. However, the shareholder and governance screening began immediately upon the amendment's effective date.