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BitGo is currently in the process of obtaining a license as a virtual asset service provider (VASP) in South Korea, an important step in regulating its operations in the country.
California-based digital asset custody firm BitGo has solidified its position in South Korea by announcing fresh partnerships with regional heavyweights. During the recent Korea Blockchain Week 2024 event, the company revealed that it has welcomed the country’s telecommunication giant SK Telecom, and leading financial holding company Hana Financial as major shareholders in its regional arm, BitGo Korea.
BitGo CEO Mike Belshe revealed that Hana Financial has acquired a 25% stake in BitGo Korea, while SK Telecom has taken a 10% share. These investments underscore the confidence that industry giants have in the future of digital asset custody services in South Korea.
Hana Financial has committed to revitalizing the local cryptocurrency sector by offering dependable custody services through BitGo. With assets totaling around 592 trillion won ($441.4 billion) as of the end of 2023, Hana Financial’s involvement brings a level of stability and trust that could encourage more institutional investors to enter the crypto space.
This is especially notable in a country where, according to a 2023 survey, 63% of the population is already aware of digital assets, indicating fertile ground for growth.
On the other hand, SK Telecom will leverage its expertise in user authentication, security, and identity verification to enhance BitGo’s service offerings. By integrating SKT’s technological capabilities, BitGo Korea aims to make its services more accessible and secure.
Crypto Regulations in South Korea
BitGo is currently in the process of obtaining a license as a virtual asset service provider (VASP) in South Korea, an important step in regulating its operations in the country. The firm is also planning to open an office in South Korea in the latter half of this year, pending the successful acquisition of the necessary regulatory approvals.
These moves are aligned with the recent wave of crypto-related legislation in South Korea. The framework empowers the Financial Services Commission and the Bank of Korea to oversee crypto operators and asset custodians, ensuring that the industry adheres to stringent Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards.
Notably, last month, the South Korean government mandated that crypto exchanges secure insurance to protect users’ assets against potential bankruptcies or liquidity crises. Moreover, it is mandatory for VASPs to keep a minimum of 80% of user funds in cold storage wallets under the newly implemented Virtual Asset User Protection Act.
BitGo’s Global Expansion
BitGo, founded in 2013, specializes in digital financial infrastructure, offering services such as wallet solutions, custody, staking, and trading. The company has been actively expanding its global presence.
In December 2023, BitGo obtained a license from the German Federal Financial Supervisory Authority (BaFin) to operate as a fully licensed custody business in Germany. Last month, it also secured a Major Payment Institution (MPI) license to legally provide digital payment token (DPT) services in Singapore.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
