Woofun AI reports that BitGo Holdings (BTGO) has secured a virtual asset services provider license in South Korea, marking the first time a global cryptocurrency firm has achieved this regulatory status. The approval enables the company to serve institutional clients through its newly established local entity, BitGo Korea, positioning it at the forefront of the region's evolving digital asset landscape.

The New York Stock Exchange (NYSE)-listed company, which went public earlier this year with a $2 billion valuation, expanded its regulated footprint beyond existing units in the U.S., Singapore, Germany, and Dubai. Per Woofun AI, the Korea Financial Intelligence Unit (KoFIU) granted the license on Wednesday, covering virtual asset custody and transfer services specifically for institutional and enterprise clients. This regulatory scope allows BitGo to operate within a strict compliance environment while targeting high-value corporate accounts rather than retail users.

South Korea remains a critical market where retail crypto traders historically generated daily volumes that outpaced stock trading during peak periods.

However, the institutional sector is now gaining prominence as retail activity weakens; major exchanges Upbit and Bithumb reported slumping first-half retail trading profits amid a broader market downturn. Abel Seow, managing director at BitGo, noted that Korean institutions seek infrastructure combining institutional-grade security with local support. To meet these demands, BitGo built the entity from the ground up, implementing local security, anti-money laundering, and internal control frameworks.

Strategic shareholders Hana Financial Group and SK Telecom, the country's largest mobile phone operator, back BitGo Korea, reinforcing its local credibility. BitGo shares surged 16% on Wednesday as cryptocurrency prices climbed, reflecting positive market sentiment toward the regulatory breakthrough. The stock continued its upward momentum, rising 3.2% in pre-market trading, signaling sustained investor confidence in the company's expansion strategy.