The Financial Intelligence Unit (FIU), under the Financial Services Commission (FSC), has approved the registration of two new Virtual Asset Service Providers (VASPs) after a year-long hiatus. The newly registered companies are DSRV, a blockchain validator operator, and BDACS, a virtual asset custody firm. Both companies obtained licenses for virtual asset transfer and custody services.
The process for these approvals took a considerable amount of time, with DSRV waiting nearly a year and BDACS approximately seven months to receive their VASP licenses. Of particular note, BDACS is expected to play a key role in collaborating with the upcoming Busan Digital Asset Exchange, contributing to the management of digital asset custody. This approval marks the first of its kind since the Virtual Asset User Protection Act came into effect, signifying the government’s continued efforts to tighten regulations and oversight within the virtual asset industry.
The FIU’s approval of these companies comes amid a broader effort by the government to increase transparency and strengthen protections for users in the virtual asset market. As part of this regulatory tightening, the FIU has extended the time required for license approval due to document reviews and compliance checks, highlighting the rigorous standards now in place. Currently, there are 39 approved VASPs in Korea, reflecting the growing regulatory framework surrounding the virtual asset industry.
The approvals of DSRV and BDACS are expected to foster greater development in the virtual asset sector. In particular, BDACS’s collaboration with the Busan Digital Asset Exchange signals a significant step forward for the industry in Korea, positioning it as a key player in the emerging market. This move aligns with the FSC’s policy direction of protecting consumers while encouraging the healthy growth of the virtual asset market under stricter regulatory supervision.
