BitGo Korea, the Korean unit of global digital asset infrastructure firm BitGo backed by equity investments from Hana Financial Group and SK Telecom, has completed the acceptance of its virtual asset service provider (VASP) report in South Korea. It will also move in earnest into digital asset infrastructure business for domestic financial institutions and companies.

BitGo Korea said on Aug. 20 that the Financial Intelligence Unit (FIU) accepted its VASP report on Aug. 18.

BitGo Korea said this was the first time a global digital asset company set up a new local entity and had its VASP report accepted to enter the South Korean market.

BitGo Korea chose to establish a new entity and directly bring BitGo's technology and systems into the country, rather than acquiring an existing domestic virtual asset service provider. After building security, anti-money laundering, internal controls and operating systems, including an information security management system (ISMS), in line with domestic regulatory standards, it underwent financial authorities' screening for a new operator report.

With the report accepted, BitGo Korea plans to carry out work such as brokerage, arranging and agency services for transfers, custody and management of virtual assets, as well as brokering sales, purchases and exchanges with other virtual assets, for corporate clients at home and abroad.

Hana Financial Group and SK Telecom participate as major shareholders in BitGo Korea. Hana Financial Group holds about 25 percent and SK Telecom about 10 percent.

BitGo is a digital asset infrastructure company founded in Silicon Valley in the United States in 2013. The company plans to use the acceptance of the report to expand its business in South Korea, focusing on financial institutions and companies. It plans to provide services including institutional digital asset custody, wallet solutions and technology infrastructure, and asset transfers and trading.

Chen Fang (첸 팡), BitGo Korea's chief executive and BitGo's chief revenue officer (CRO), said, "For any global company that wants to run a long-term business for Korean customers, it is essential to have its technology and systems validated within Korea's regulatory framework." He added, "That is why we established a corporation and went through the reporting process formally, even if it takes more time."