BitGo has secured a VASP licence in South Korea via a newly built local entity, BitGo Korea.
According to CoinDesk, the approval, granted by the Korea Financial Intelligence Unit (KoFIU), allows the newly formed BitGo Korea to offer virtual asset custody and transfer services to institutional and enterprise clients in the country.
The new entity adds to BitGo's existing regulated operations in the US, Singapore, Germany and Dubai. It is backed locally by two strategic shareholders, Hana Financial Group and SK Telecom, the country's largest mobile network operator.
BitGo went public on the New York Stock Exchange earlier in 2026 at a valuation of USD 2 billion, positioning custody services as a core part of its growth strategy. Shares in BitGo Holdings rose 16% on Wednesday as cryptocurrency prices increased, and were up a further 3.2% in pre-market trading.
Institutional focus amid a retail slowdown
South Korea has one of the most active retail cryptocurrency trading populations globally, with daily trading volumes on local exchanges regularly exceeding those of the stock market during periods of high activity. However, a broader slump in global cryptocurrency markets has weighed on retail trading volumes in the country. Moreover, the two largest local exchanges, Upbit and Bithumb, reported a decline in retail trading profit in the first half of 2026.
Against this backdrop, institutional demand for digital asset infrastructure in South Korea is drawing increased attention, as institutions and enterprises look for custody providers that combine security standards with local regulatory alignment. Abel Seow, managing director at BitGo, said Korean institutions are seeking infrastructure that meets these requirements alongside local support.
Market and regulatory context
The KoFIU approval covers custody and transfer services specifically for institutional and enterprise clients, rather than retail-facing exchange activity. BitGo's approach of establishing a fully owned local entity, rather than acquiring a licensed operator, reflects a direct route to regulatory approval that has not previously been taken by a global digital asset firm entering the South Korean market.
The move comes as institutional interest in digital asset custody continues to grow across major markets, with regulated infrastructure providers seeking to expand their footprint in jurisdictions with established retail crypto activity but developing institutional frameworks. BitGo's entry into South Korea, supported by two large domestic financial and telecommunications shareholders, points to continued interest from local corporates in the digital asset sector even as retail trading conditions remain subdued.
