BitGo Korea Secures VASP Registration Before Tighter Checks

BitGo Korea has secured virtual asset service provider registration from South Korea's Financial Intelligence Unit, becoming the first local entity owned by an overseas crypto company to complete the process directly. The approval came two days before stricter entry checks took effect.

Yonhap News Agency reported on Aug. 20 that the FIU, an agency under the Financial Services Commission, accepted BitGo Korea's VASP registration on Aug. 18. The company was established in 2024 and chose to meet the country's regulatory requirements through its own entity rather than acquire a company that already held VASP registration, according to the Yonhap report.

The registration lets BitGo Korea build cryptocurrency custody and transfer services for financial institutions and corporate customers. The company did not provide a launch date or name any customers. It also did not disclose how much it expects to hold in custody through the Korean entity. Details about supported assets and custody charges were absent. Insurance coverage details were not provided.

BitGo CEO Mike Belshe called the registration an important step in the company's plan to establish regulated infrastructure in major markets. “We will focus on connecting global virtual asset infrastructure with the Korean market,” Belshe said, according to a translation of his statement carried by Yonhap.

South Korea treats VASP approval as a registration, not a general financial services license. The approval permits BitGo Korea to run its stated custody and transfer operations. The announcement did not say that the company can operate a won-based retail cryptocurrency exchange.

Two large Korean companies back BitGo's entry. Hana Financial Group acquired a 25% interest in BitGo Korea in 2024. SK Telecom, an Unscored stock in AlphaScala's Communication Services sector, purchased a 10% stake and joined the venture as a strategic partner. In May, crypto.news reported Hana Bank's planned 930 billion won, or roughly $670 million, investment in Dunamu, the operator of Upbit. The report also noted that Hana and SK Telecom had helped establish BitGo Korea as part of the bank's digital-asset activity.

Hana Bank began working with BitGo on cryptocurrency custody services in 2023. Under the ownership arrangement, Hana was expected to contribute its financial-sector experience. SK Telecom would provide knowledge related to authentication and identity checks, along with security expertise. Alongside its BitGo investment, Hana has pursued other crypto-related projects. A March 2026 report detailed cooperation between Hana Financial and Standard Chartered on tokenized deposits, stablecoins, custody, and payment infrastructure.

BitGo said in 2024 that its Korean partners would help develop an institutional market for digital assets. The latest announcement did not state whether Hana, SK Telecom, or their subsidiaries will become paying customers of the newly registered business.

Founded in the United States in 2013, BitGo provides custody, wallets, trading, settlement, staking, and other digital-asset services through entities in several jurisdictions. In Europe, BitGo holds authorization from Germany's Federal Financial Supervisory Authority under the Markets in Crypto-Assets framework. Its other regulated operations include entities in Singapore, Dubai, Denmark, and Switzerland, according to the company's licensing information.

For US institutions, BitGo's Korean registration follows a separate federal banking process. A July 2026 report said BitGo had received full approval from the Office of the Comptroller of the Currency to convert its state-chartered trust company into a national trust bank. A national trust bank may provide custody and fiduciary functions, along with approved asset-servicing functions under federal supervision. It does not operate like a commercial bank that accepts ordinary insured deposits and issues conventional consumer loans.

BitGo states on its website that BitGo Bank & Trust, National Association, is regulated by the OCC. The company also warns that digital assets held in custody are not protected by the Federal Deposit Insurance Corporation or Securities Investor Protection Corporation insurance. The Korean approval therefore does not extend the protections or permissions attached to BitGo's US-regulated entity. Services offered in South Korea will remain subject to local rules, customer eligibility requirements, and the authority of Korean regulators.

Stricter Entry Checks Take Effect

BitGo Korea received its approval shortly before stricter entry checks took effect on Aug. 20. The FSC said the revised rules expand regulatory reviews to the chief executive or controlling shareholder of a VASP. When a company is the largest shareholder, the FIU may also examine that company's largest shareholder and representative. BitGo Korea's shareholder structure includes Hana Financial and SK Telecom. Neither the FSC nor BitGo said whether the new tests applied to the application accepted on Aug. 18.

Under the updated framework, applicants must maintain a debt ratio of no more than 200% and must not have defaulted during the previous three years. A company may also be rejected if it was previously declared an insolvent financial institution or lost a registration or operating license for violating financial laws. Executives must satisfy the qualifications established under South Korea's rules for the governance of financial companies. The FSC said applicants also need suitable staff, cybersecurity systems, physical infrastructure, and internal controls covering anti-money-laundering duties and customer protection.

South Korea has previously acted against overseas platforms that served local customers without registration. In January, Google Play restrictions required crypto exchanges and wallet providers targeting South Korean users to show proof of an accepted VASP filing to remain available through the local app store.

Transfer controls will become stricter under another part of the revised framework. The FSC said South Korea will remove the existing 1 million won threshold for Travel Rule checks between registered domestic VASPs, requiring sender information to accompany transfers of every value. Transfers involving foreign exchanges or personal wallet providers will be permitted under risk-based conditions. Six months after the revised rules are promulgated, registered providers must also report transfers of at least 10 million won to overseas VASPs or wallet services to the FIU, regardless of the assessed transaction risk.