The Bank of Korea has launched its first survey of financial institutions to gauge exposure to cryptocurrency-related risks. The questionnaire, sent to 18 banks and 13 brokerages on October 23, asks respondents to consider scenarios such as a major exchange hack, a sharp decline in crypto prices, and heavy losses at another firm.
Participants are required to detail crypto‑related staffing, budgets, business activities, motivations for market entry, and investments in domestic and overseas crypto companies. One scenario specifically asks how a temporary suspension of operations at South Korea’s largest crypto exchange, following a major hack, would affect the institution.
The survey also explores the impact of a sustained trading slump after a steep price fall and the fallout from a significant loss at another financial institution linked to crypto activities. Responses are due by the following Wednesday.
Context and related developments
The inquiry began before the recent $6.3 billion Binance hack, an incident attributed by U.S. authorities to North Korean hackers, underscoring the type of risk the central bank is examining.
South Korean firms continue to test stablecoin services despite regulatory delays. KB Financial Group completed a won‑denominated stablecoin pilot in May, while Kakao Pay and KakaoBank partnered with Fireblocks in September to explore digital‑asset infrastructure. The Bank of Korea has advocated for bank‑led stablecoin issuance, though disagreements over eligible issuers have slowed progress on the Digital Asset Basic Act.
Regulators are also tightening cybersecurity requirements. In October, the Financial Services Commission proposed stricter security standards after identifying deficiencies at 130 of 555 financial companies, including more frequent vulnerability assessments and heightened executive accountability following incidents at 16 firms, among them crypto exchanges.
