BitGo Korea VASP Registration Advances Institutional Crypto Custody Standards

South Korea's KoFIU accepted BitGo Korea's VASP registration on or around August 18, 2026. The approval allows the firm to offer virtual asset custody and transfer services specifically to institutional and enterprise clients through a newly established local entity.

BitGo Korea becomes the first global crypto company to secure this license without relying on an acquisition of an existing domestic operator. The registration follows prior ISMS certification and aligns with capital requirements of KRW 1 billion set under the Act on the Protection of Virtual Asset Users.

Registration Details and Custody Requirements

The 2024 Act mandates that licensed VASPs providing custody services segregate client assets from their own holdings. At least 80 percent of client virtual assets must remain in cold wallets, with insurance or reserves maintained to cover potential incidents. KoFIU oversees AML and CFT compliance, while the FSC handles overall licensing.

BitGo Korea's registration covers custody and transfer activities targeted at institutions. The firm operates with backing from Hana Financial Group at 25 percent ownership and SK Telecom at 10 percent. Domestic operators such as Korea Digital Asset Custody and KODA already hold renewed VASP registrations and provide services that include full cold-wallet storage options for listed companies.

KDAC launched its KDAC-L service in January 2026, incorporating multi-signature and MPC technology along with SOC reports. These existing providers demonstrate how the framework supports enterprise-grade solutions while meeting the 80 percent cold-storage threshold.

Broader Regulatory Context and Next Steps

In July 2026, the head of the FSC's Virtual Assets Division stated that custody would likely be treated as a distinct business line under the forthcoming Phase 2 legislation, known as the Digital Asset Basic Act. Entry and conduct rules remain under review, with no requirement for exchanges to spin off custody operations.

The FSC continues to examine whether the cold-wallet ratio for exchanges should rise toward 100 percent. Phase 2 rules covering stablecoins and tokenized securities are in final consultations, with draft tokenized securities provisions published in October 2026 and scheduled to take effect from February 2027. Amendments tightening VASP shareholder and AML checks passed around October 2026 and will apply within six months.

These developments occur alongside the phased removal of the corporate crypto trading ban, with guidelines still pending. Licensed custody infrastructure is positioned to support expanded institutional participation once the new rules finalize. Public consultation on the tokenized securities drafts closes on November 11, 2026.