Bank of Korea Probes Financial Exposure to Crypto Risks

The review, which began on October 23 and requires submissions by November 4, targets South Korea’s five largest banks—including KB Kookmin and Shinhan—alongside 13 securities firms. Regulators are pressing these institutions to disclose staffing levels, budget allocations, and specific risk-management protocols for their digital asset departments. The inquiry specifically mandates stress-testing scenarios, asking firms to model the impact of a major exchange shutdown or a prolonged collapse in Bitcoin prices.

While the survey precedes recent high-profile security breaches, it highlights growing unease within the central bank regarding the integration of volatile assets into traditional banking. Officials remain concerned that institutional reliance on digital assets could create systemic contagion if a single firm suffers significant losses. Despite these warnings, South Korean financial entities continue to pursue blockchain-based payment trials, including recent stablecoin testing by Gwangju Bank and infrastructure partnerships involving KakaoBank. The central bank intends to use the gathered data to fill critical reporting gaps in the sector’s digital asset activities.