Hana Financial Group and SK Telecom have acquired large stakes in BitGo Korea, the local arm of the global digital asset custody firm. Hana Financial Group secured a 25% share, while SK Telecom obtained a 10% stake, making them key shareholders in the company. BitGo CEO Mike Belshe made the announcement during the Korea Blockchain Week 2024 in Seoul.
BitGo is also in the process of obtaining a license as a virtual asset service provider (VASP) in South Korea, which is a critical step toward regulating its activities in the country. The collaboration with Hana Financial and SK Telecom is expected to contribute to the broader institutionalization of virtual assets within South Korea’s financial landscape.
BitGo Korea emphasized that the investments from Hana Financial and SK Telecom highlight the increasing importance of regulatory compliance within the virtual asset sector. The partnership is expected to combine BitGo’s global expertise in digital asset technology with Hana Financial’s knowledge of financial services and compliance, enhancing the security and transparency of digital asset transactions.
The entry of Hana Financial Group and SK Telecom into BitGo Korea is a global trend of traditional financial institutions venturing into the digital asset arena. This move reflects South Korean companies’ growing acceptance of digital assets as part of their portfolios. Furthermore, their involvement is likely to inspire other financial and technology firms to consider similar partnerships or investments in the digital asset space.
A representative from Hana Bank mentioned that the partnership is designed to build trust and enhance consumer protection within South Korea’s developing digital asset market. The inclusion of SK Telecom is anticipated to boost BitGo’s footprint in the local market, further advancing the institutionalization of cryptocurrencies across the nation.
“BitGo will actively introduce the technology and operational expertise it has gained in the global market to South Korea, aiding in the institutionalization of virtual assets,” stated Lee Young-ro, CEO of BitGo Korea.
The participation of major companies like Hana Financial Group and SK Telecom may encourage the South Korean government to establish clearer regulations and standards for digital assets. So far, South Korea has adopted a cautious approach, implementing measures such as real-name account requirements and anti-money laundering compliance for exchanges.
With the involvement of Hana and SK, the Financial Services Commission may develop more comprehensive guidelines for digital asset custody and investor protection.
Established in 2013, BitGo focuses on digital financial infrastructure, providing services such as wallet solutions, custody, staking, and trading. The company has been steadily expanding its global reach, acquiring a license from the German Federal Financial Supervisory Authority (BaFin) in December 2023 to operate as a fully licensed custody provider in Germany. Additionally, it obtained a Major Payment Institution (MPI) license last month, enabling it to legally offer digital payment token (DPT) services in Singapore.
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