BitGo Korea has obtained a virtual asset service provider (VASP) registration in South Korea, establishing the regulatory groundwork necessary to provide digital asset custody for institutional clients.

In a Thursday announcement, BitGo confirmed that the Korea Financial Intelligence Unit had accepted its local entity’s VASP registration. This approval permits the company to deliver virtual asset custody and transfer services to both institutional and enterprise customers.

The company emphasized that it built its local subsidiary from the ground up, instead of acquiring an existing registered provider. This process involved creating security, anti-money laundering (AML), internal control, and operational frameworks specifically designed to comply with South Korean regulations. Strategic shareholders in BitGo Korea include Hana Financial Group and the telecommunications firm SK Telecom.

The timing of the approval was critical. According to Yonhap News Agency, regulators accepted the registration on Tuesday, which was just two days before more stringent entry requirements for VASPs came into force in South Korea.

The country’s Financial Services Commission has detailed that these updated rules involve expanded scrutiny of shareholders. Additionally, applicants are now required to meet higher standards for financial soundness, cybersecurity, internal controls, and AML compliance.

Cointelegraph reached out to BitGo for additional details but did not receive an immediate response.