InterviewKorea is more than retail crypto market: BitGo CEO

Global crypto companies often underestimate Korea by viewing it primarily as a retail trading market, but that perception overlooks the country’s sophisticated financial institutions, advanced technology infrastructure and growing demand for regulated digital asset services, BitGo CEO Mike Belshe said.

These factors could make Korea an important market for institutional crypto adoption, he said.

"The biggest issue is not whether there is interest," Belshe told The Korea Times in a written interview. "It is whether Korean institutions have the infrastructure and regulatory certainty to participate comfortably."

On Aug. 20, BitGo Korea, the Korean arm of the U.S.-based global digital asset infrastructure company, completed its registration as a virtual asset service provider with the Financial Intelligence Unit under the Financial Services Commission, the country’s top financial regulator, becoming the first foreign crypto company to enter the Korean market through direct registration.

Rather than entering the market by acquiring an already licensed local operator, BitGo established its own Korean entity in 2024. The move required the company to build its compliance, security and operational systems around Korean regulatory requirements from the outset. Hana Financial Group and SK Telecom also hold stakes of 25 percent and 10 percent, respectively, in BitGo Korea.

Belshe said BitGo took the less common route because it wanted to build a long-term presence in Korea.

"You have to spend time with institutions, understand how they operate and build around the local regulatory framework. That was a big part of our decision to establish BitGo Korea rather than serve the market from elsewhere," he added.

The move also reflects BitGo's expectation that institutional use of digital assets in Korea will continue to expand.

"What we are seeing is that institutions are doing more with digital assets, not just holding them, but trading, staking, financing and moving them," he said. "We believe Korea will develop in a similar direction, although it will have its own path."

BitGo currently serves about 5,800 clients and 1.2 million users globally.

Korea is working to establish a broader legal framework for digital assets as institutional interest grows, but several key policy questions remain unresolved. Related bills have yet to pass the National Assembly, with lawmakers and regulators continuing to debate issues including eligibility requirements for stablecoin issuers and a proposed 20 percent ownership cap on major shareholders of cryptocurrency exchanges.

The regulatory uncertainty has not stopped companies from preparing for a more institutionalized digital asset market.

Traditional financial groups are exploring partnerships and investments in cryptocurrency businesses, while technology and payment companies are examining the use of stablecoins and blockchain-based systems for faster and lower-cost settlement.

Belshe said the immediate challenge for BitGo is ensuring that infrastructure around digital assets can meet the standards Korean financial institutions already expect from conventional financial markets. Institutions require regulated custody, stronger compliance and security infrastructure.

The company plans to expand its Korean team as demand develops, with the size and pace of that expansion determined by the services local clients require.

"We are starting with custody and transfer, but we see that as the foundation rather than the end point," Belshe said. "Ultimately, we want to connect Korea's financial system with the infrastructure being built around digital assets."