BitGo, a leading virtual asset custody company, is making strides to enter the South Korean market, leveraging both global expertise and strategic local partnerships. The U.S.-based firm, established in 2013, has formed a joint venture with Hana Bank, one of Korea’s largest financial institutions, to launch BitGo Korea. The partnership marks a significant move for BitGo as it navigates the complex regulatory landscape of the country’s growing crypto market.
In early September, BitGo Korea secured further investments from two of South Korea’s most influential companies: Hana Financial Group and SK Telecom. The financial giant and the telecommunications leader acquired 25% and 10% stakes in BitGo Korea, respectively. These alliances are expected to enhance BitGo’s ability to interact with regulators and foster trust among Korean consumers.
“We want to bring what we consider one of the best in the world in terms of our experience of know-how and security. But in Korea, we need the help of two local players to understand the Korean market,” Lee Young-ro, CEO of BitGo Korea, told The Korea Times. “Our job is to not make assumptions and say, ‘Oh, just because it’s worked in the U.S., it should work in Korea.’ That’s not what we’re trying to do.”
Lee, who took the helm as CEO in September, has a rich background in private equity law and tech startups, including launching NextSeed and Brassica. His expertise in regulatory issues and technology has prepared him to lead BitGo’s expansion into South Korea. Lee emphasized the importance of understanding the unique nuances of the Korean market and adapting BitGo’s global model to meet local needs.
BitGo is in the process of obtaining registration as a Virtual Asset Service Provider (VASP), a requirement for operating custody services in South Korea. This registration is expected to be completed next year, paving the way for BitGo to offer secure and regulated custody services. The company plans to start with custody and expand into other financial services over time.
Lee acknowledged that one of the main challenges BitGo faces in Korea is building trust. Many Koreans are unfamiliar with virtual asset custody services, and concerns remain about the safety and security of digital assets, especially after high-profile incidents like the collapse of FTX. BitGo aims to address these concerns by providing a service that guarantees both physical security and legal protection for assets.
“When people are dealing with things that are so fast or so easy, it seems they don’t necessarily think about security until something goes wrong. And that’s exactly what happened, obviously during the FTX crisis,” Lee explained. “When you lose because you made the wrong investment, that’s on you. But if you lose because someone else did something—whether they stole that asset or hacked—that’s a whole different problem.”
BitGo’s custodial services are designed to offer more than just security from cyber threats; they provide legal safeguards that protect clients’ assets. This is a key differentiator from digital custody platforms that operate solely on software, according to Lee. “Our business model and philosophy depend on how we work with regulators to provide legal protection as far as security protection. We hope to do the same in Korea, working with our partners and regulators.”
With around $70 billion in assets under management and a cumulative transaction volume of $3 trillion, BitGo is a major player in the global cryptocurrency market. The company processes approximately 20% of global on-chain Bitcoin transactions through its infrastructure.
As South Korea continues to position itself as a hub for cryptocurrency and blockchain innovation, BitGo’s entry into the market is a promising step towards building a more secure and regulated digital asset ecosystem. “At the end of the day, we want Korea to have a very, very successful crypto or blockchain industry,” Lee said. “Hopefully, we can be part of that by providing more assurances, more comfort, more security to both the investors and the individuals.”
