TLDR
- The Bank of Korea began surveying 18 banks and 13 brokerages on Oct. 23 about crypto-related risks.
- It is the central bank’s first reported review of how financial firms take part in the crypto market.
- Scenarios include a major exchange hack or shutdown, a long crypto downturn and heavy losses at another firm.
- The survey began before last week’s $6.3 billion Binance hack, which US authorities blame on North Korean hackers.
- Responses are due this week, with reports citing Nov. 4 as the deadline.
The Bank of Korea has reportedly asked banks and brokerages how crypto-related risks could affect their operations. The questions cover hacks, market crashes and losses at other financial firms.
The central bank began surveying 18 banks and 13 brokerages on Oct. 23. The Herald Business and Yonhap reported the news, citing financial industry sources.
The survey is the first reported review of how financial institutions take part in the virtual asset market. It covers 31 firms in total.
The top five banks are on the list. They are KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
What the Survey Asks
The questionnaire asks about each firm’s crypto staffing, budgets and business activities. It also asks why firms entered the market and how much they have invested in domestic and overseas crypto companies.
Reports say it also covers organizational structure, risk management practices and whether a firm has a dedicated virtual asset team.
One scenario asks what would happen if South Korea’s largest crypto exchange by market share suspended operations after a major hack or similar event. Another asks about a steep fall in crypto prices followed by a long trading slump.
A third scenario asks how a firm would be affected if another financial institution suffered heavy losses from a crypto-related incident. This points to the risk that one firm’s problem spreads to others.
Timing and Background
The survey began before last week’s $6.3 billion Binance hack. US authorities have attributed that attack to North Korean hackers.
The survey also follows the Bank of Korea’s June 2026 Financial Stability Report. That report flagged growing links between digital asset markets and traditional finance.
Responses are due this week. Reports give a deadline of Nov. 4.
South Korean financial firms have continued to test stablecoin services. KB Financial Group completed a won-denominated stablecoin pilot in May. Kakao Pay and KakaoBank partnered with Fireblocks in September to explore digital asset infrastructure.
The Bank of Korea has pushed for bank-led stablecoin issuance. Disagreements over which institutions can issue stablecoins have slowed the proposed Digital Asset Basic Act.
“Financial institutions are making their own preparations even as virtual asset legislation is moving more slowly than the market expected,” a Bank of Korea official told The Korea Herald.
Regulators have also raised cybersecurity scrutiny. In October, the Financial Services Commission proposed tougher security rules after finding gaps at 130 of 555 financial companies.
The proposals include more frequent vulnerability checks and greater executive accountability. They follow security incidents involving 16 companies, including crypto exchanges.
Nothing in the reporting indicates the survey sets new requirements. The next date to watch is Nov. 4, when firms are due to respond.
