BitGo Becomes First Global Crypto Firm to Secure South Korea VASP Licence

BitGo Holdings, which is a cryptocurrency custodian company, stated that it was the first global cryptocurrency company to obtain a virtual asset services provider license in South Korea, thus enabling it to reach organisations in the world's most vibrant crypto market. The company, which debuted publicly on the NYSE (New York Stock Exchange) early this year with an estimated worth of around $2 billion (roughly Rs. 19,250 crore), has formed a local subsidiary called BitGo Korea, joining its list of regulated units in the US, Singapore, Germany, and Dubai.

BitGo Builds Local Infrastructure to Target South Korea's Institutional Market

As per the release by Business Wire, the Korea Financial Intelligence Unit (KoFIU) certification includes virtual asset custody and transaction services for institutional and corporate clients, according to BitGo. Retail cryptocurrency traders in South Korea have been labeled as highly active, as their daily trading volumes on local platforms frequently exceed those of the stock markets. Now, however, the institutional crypto market is being given much attention since the retail trading sector is affected by a poor global crypto market environment characterised by lower volumes and lower first-half retail trading profits in the top two exchanges, Upbit and Bithumb.

“We chose to establish BitGo Korea locally and complete the VASP registration process directly because we believe serving Korean institutions requires a long-term commitment to the market and its regulatory framework,” said Chen Fang, CEO of BitGo Korea and Chief Revenue Officer of BitGo. “This approval gives us the foundation to serve institutional clients in South Korea through a locally registered entity.” 

The entity was created by the organisation from scratch, having set up its security, anti-money laundering, and control structures. Hana Financial Group, a financial holding company, and SK Telecom, South Korea's largest mobile phone provider, are strategic investors in BitGo Korea. BitGo stock jumped by 16 percent yesterday due to a rise in the value of cryptocurrencies. The stock has risen by 3.2 percent in the pre-market trade.

Earlier in April, the South Korean government announced that they are looking to introduce blockchain-based payments for certain government expenses under a regulatory sandbox, exploring distributed ledger technology (DLT)-based financial infrastructure. The Ministry of Economy and Finance (MOEF) said that it will begin selecting operators and coordinating with relevant agencies and businesses to finalise its scope.