Bank of Korea questions 31 financial firms over crypto hack, market risks

The Bank of Korea has launched a review of cryptocurrency-related risks across 31 financial institutions, asking how exchange shutdowns, falling digital asset prices and losses at other firms could affect their businesses.

Summary

• The Bank of Korea has launched its first reported survey examining financial institutions’ cryptocurrency activities and associated risks.
• The review covers 18 banks and 13 securities firms, including South Korea’s five largest banks.
• The central bank is examining possible losses from exchange hacks, prolonged crypto downturns and financial institution failures.
• Institutions must submit their responses by November 4, according to Yonhap News Agency.
• The review comes as South Korean banks pursue stablecoin projects while lawmakers continue discussing digital asset regulations.

According to Yonhap News Agency, the central bank began surveying 18 banks and 13 securities firms on October 23. The questionnaire examines their involvement in the virtual asset market, the money committed to related activities and existing measures for managing potential losses.

The review is the central bank’s first reported survey specifically examining financial institutions’ participation in the cryptocurrency industry. Responses are due by November 4.

Bank of Korea examines crypto risks at 31 financial firms

The survey covers South Korea’s five major banks, including KB Kookmin, Shinhan, Hana, Woori and NH NongHyup, alongside 13 securities companies and other lenders.

Financial institutions have been asked to provide information about their cryptocurrency-related departments, staffing arrangements and budgets.

The questionnaire seeks details about existing digital asset businesses, planned projects and the reasons companies are considering entering the market.

Another section covers investments in domestic and overseas cryptocurrency companies, including the amounts institutions have committed.

According to The Korea Herald, officials want to establish how much exposure traditional financial companies have accumulated as virtual assets become part of their business plans.

The survey further asks companies to explain how they identify cryptocurrency-related risks and what arrangements they have established to manage them.

A Bank of Korea official said financial companies were preparing for digital asset opportunities despite slower-than-expected legislative progress.

“The purpose is to take stock of the current situation and get an early read on what lies ahead,” the official said.

The central bank reportedly intends to use the responses as internal reference material while studying developments in the financial sector.

Exchange hacks and market crashes feature in risk scenarios

One question asks how financial institutions would be affected if South Korea’s largest cryptocurrency exchange temporarily suspended operations following a major security breach.

The questionnaire does not identify a specific exchange or establish that such a shutdown is expected.

Another scenario considers a steep decline in Bitcoin and other cryptocurrency prices, followed by a prolonged reduction in trading activity.

Companies must assess how such conditions could affect their operations and existing exposure to digital asset businesses.

The Bank of Korea is examining whether losses at one financial institution could create problems for others involved in cryptocurrency-related activities.

These questions were prepared before Binance disclosed a $6.3 billion security breach on October 29.

The incident subsequently renewed attention to exchange security and the potential financial consequences of major cryptocurrency thefts.

However, the Bank of Korea’s October 23 survey began six days before that attack and was not announced as a response to Binance.

In South Korea, cybersecurity concerns have already prompted regulatory scrutiny following several incidents involving banks, securities firms and cryptocurrency businesses.

Local authorities reported security deficiencies at 130 of 555 financial companies reviewed during October.

South Korean banks continue developing stablecoin services

The survey arrives while several major Korean financial institutions are exploring stablecoins and blockchain-based payment services.

In September, Kakao Pay and KakaoBank signed a stablecoin infrastructure agreement with Fireblocks.

The companies agreed to explore digital asset distribution arrangements and conduct technical trials, without announcing a commercial stablecoin launch.

Separately, Gwangju Bank and Toss completed stablecoin payment testing involving QR codes and connected payment applications in October.

The trial allowed participants to transfer stablecoins between digital wallets through banking and merchant payment interfaces.

International payment company MoonPay entered the Korean market in September, announcing plans to work with local financial institutions.

As crypto.news previously reported, MoonPay’s Korean expansion includes potential cooperation with Woori Bank, KB Financial Group and KakaoBank.

Its plans cover stablecoin payments, remittances and digital asset infrastructure, subject to the country’s developing regulatory requirements.

Meanwhile, disagreements about whether banks or nonbank companies should issue won-denominated stablecoins have complicated legislative discussions.

Central bank has warned about crypto’s links to financial markets

The Bank of Korea previously examined cryptocurrency market volatility in its June financial stability report.

According to The Korea Herald’s account of that report, the central bank found that cryptocurrency and stock market movements became more closely linked during periods of financial stress.

The report cited market conditions during the COVID-19 pandemic and the global interest rate increases in 2022.

It further noted that correlations remained elevated after U.S. spot Bitcoin exchange-traded funds began trading in 2024.

In a separate November 2025 report, the central bank warned that won-denominated stablecoins could introduce risks involving collateral shortages, short-term interest rate volatility and financial market stress.

Officials have said existing regulatory reporting provides information about conventional banking activities but contains gaps concerning financial institutions’ digital asset businesses.

The central bank expects to collect the completed questionnaires from the 31 institutions by Wednesday, November 4.