SK Telecom and Hana Financial Acquire Stake in BitGo Korea Branch.
Date: 2024-09-03 Author: Oliver Abernathy Categories: BUSINESS
Leading South Korean telecom and financial giants SK Telecom and Hana Financial Group have become the majority shareholders of BitGo Korea.
BitGo CEO Mike Belsh announced the news at the Korea Blockchain Week 2024 event in Seoul, according to a report from Yonhap News Agency.
BitGo Korea to Expand Market Share with New Collaboration
The collaboration between BitGo and the South Korean telecom giants is aimed at strengthening the platform’s position in the local market, with the broader goal of promoting the institutionalization of cryptocurrency in South Korea.
Hana Financial plans to improve the local crypto ecosystem by offering secure and reliable custody services through BitGo.
Meanwhile, SK Telecom will use its expertise in user authentication, security, and identity verification to improve the availability of BitGo services to Korean customers.
BitGo Korea was established as a joint venture between BitGo and Hana Bank earlier this year, following an initial partnership launched in September last year.
BitGo Korea is currently in the process of obtaining a virtual asset service provider license in South Korea.
Founded in 2013, BitGo manages approximately $70 billion in assets, with approximately 20% of blockchain-based bitcoin transactions conducted through its infrastructure.
Hana Financial Group is one of South Korea’s largest financial institutions, with assets worth approximately 592 trillion won ($441.4 billion) as of the end of 2023.
SK Telecom, the country’s leading telecom provider, has about 40% of the market.
In May, the Delaware Supreme Court ruled in favor of BitGo, overturning a lower court’s dismissal of the company’s $100 million lawsuit against Galaxy Digital.
The lawsuit stemmed from a failed acquisition between the two companies.
Galaxy, led by Mike Novogratz, announced its intention to acquire BitGo in May 2021 as part of its initial public offering in the United States.
However, in August 2022, Galaxy terminated the BitGo acquisition, citing a breach of contract.
South Koreans Turn to Cryptocurrency
A recent survey found that most young South Koreans are losing faith in the national pension system, with many considering cryptocurrency and stocks as better alternatives.
The study found that more than three-quarters of people aged 20 to 39 “don’t trust” government pensions.
More than half of respondents who said they manage their own retirement plans said they are building their retirement funds with stocks and cryptocurrencies.
Interestingly, even election candidates have cryptocurrencies, with around 7% of them owning digital assets, according to a Yonhap report that analyzed their asset disclosures.
It was recently reported that South Korea is set to introduce stricter rules for token listings on exchanges, including blocking hacked tokens.
Remarkably, South Korea plays a significant role in the global cryptocurrency market, with the South Korean won being the most traded fiat currency in the first quarter of the year.
