Authorities Approve First 'Cryptocurrency Securities Firm' of the Year... HappyBlock

HappyBlock Completes VASP Registration

Second Among Brokerage Platform Companies

Role in Executing Institutional Investor Orders Upon Bitcoin Spot ETF Introduction

Financial authorities have completed the registration of HappyBlock, a virtual asset brokerage platform company, as a VASP (Virtual Asset Service Provider). This is the second time VASP approval has been granted to a brokerage service provider, following Wavebridge at the end of last year. The financial authorities are preparing the necessary infrastructure to facilitate smooth trading for institutional investors by allowing corporate virtual asset account issuance and introducing Bitcoin spot ETFs.

According to the financial investment industry on the 20th, the Financial Intelligence Unit (FIU) under the Financial Services Commission completed the first VASP registration of the year for HappyBlock on the 17th. It has been about 1 year and 5 months since HappyBlock submitted its registration in August 2023. Currently, the only virtual asset brokerage service companies approved as VASPs are the quant-based fintech company Wavebridge and HappyBlock. This can be seen as obtaining a license to operate similarly to traditional securities firms in the virtual asset field.

HappyBlock is a digital asset specialized brokerage company founded in May 2022 by Kim Kyu-yoon, known as an expert in derivatives trading and digital assets in the securities industry, and it positions itself as a 'digital securities firm.' HappyBlock has been preparing for corporate (B2B) virtual asset brokerage. Six months after its establishment, it secured seed investment from SK Securities and is currently forming partnerships with major global VASPs such as Fireblocks and Kaiko.

HappyBlock is developing and operating the 'Bowman' platform for institutional investors. It integrates asset management within exchanges, custody, and personal wallets, and supports financial management tools. In particular, the 'Bowman Prime Service' based on Bowman claims to be the first specialized brokerage in the country. HappyBlock plans to provide OTC (over-the-counter) brokerage for institutional virtual asset orders and bulk transactions through this service.

Kim Kyu-yoon, CEO of HappyBlock, stated, "We plan to pursue businesses that align with the policy directions of financial authorities," and "We will address key issues such as investor protection, financial market stability, anti-money laundering, and taxation, and develop our business in line with the schedule for introducing spot ETFs."

The industry anticipates that the role of VASPs providing brokerage services will be highlighted if corporate virtual asset real-name account issuance is allowed and Bitcoin spot ETFs are introduced. Last year, the U.S. Securities and Exchange Commission (SEC) approved Bitcoin and Ethereum spot ETFs, but trading them through domestic securities firms is not possible. This is due to the financial authorities' interpretation that virtual assets are not financial investment products under the Capital Markets Act.

However, financial authorities have shown a slow but steady move towards easing regulations related to virtual assets this year. Earlier, the Financial Services Commission announced in its '2025 Major Business Promotion Plan' on the 8th that it plans to gradually allow the opening of corporate virtual asset exchange won real-name accounts. They intend to permit Bitcoin spot ETFs after completing systems for stability and investor protection.

A financial investment industry official stated, "Currently, even in the U.S., traditional securities firms cannot handle cryptocurrency orders managed by asset managers," and "If domestic virtual asset ETFs are introduced, there will naturally be a need for entities to execute institutional investor orders." They added, "Virtual asset brokerage service companies have been preparing for such roles, and the Financial Services Commission seems to have granted approval seeing the necessity of these services."

Koh Jeong-sam, Hankyung.com reporter jsk@hankyung.com