CoinDesk
The Bank of Korea sent a survey to 18 banks and 13 securities firms asking how they would fare if South Korea’s largest crypto exchange halted operations after a major hack. Responses are due Nov. 4. The questionnaire also examines a sharp crypto price fall, prolonged trading slump and losses at another financial institution.
The BOK says existing business reports and information shared with the Financial Supervisory Service do not provide enough detail on financial firms’ crypto activities. The survey also asks about firms’ crypto teams, budgets, business plans and investments in domestic and overseas crypto companies.
The questions come as financial institutions expand their links to digital assets. Rules introduced in 2024 require exchanges to hold customer cash deposits at banks, separate from their own funds. Banks must return those deposits directly to customers if an exchange goes bankrupt or loses its registration. Jeonbuk Bank also began offering bitcoin-backed loans to corporate clients in October, with a registered crypto service provider holding the collateral.
Why it matters
The exercise gives the central bank a closer look at possible links between crypto-market disruptions and regulated financial firms. It covers exchange outages, price declines, institutional losses and firms’ own investment and staffing plans, rather than focusing on a single exposure.
The BOK is not saying a crisis is underway: an official said the central bank does not consider financial-stability risks to have materialized. The survey responses are intended as internal reference data, and no sanctions or new rules have been decided.
Market impact
For crypto markets, the survey signals closer scrutiny of how banks and brokerages could be affected by a major exchange failure or a sustained downturn. It does not announce a change in current rules. The results could help the BOK assess exposures that existing reporting does not detail, while the current limits on financial firms’ crypto activity remain in place.
Frequently asked questions
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How many financial firms did the Bank of Korea survey?
The survey went to 18 banks and 13 securities firms. Responses are due Nov. 4.
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What crypto stress scenarios does the survey cover?
It asks about a major hack that halts South Korea’s largest crypto exchange, a sharp crypto price fall followed by a prolonged trading slump, and losses at another financial institution.
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Why is the Bank of Korea gathering this information?
The central bank says existing business reports and information shared with the Financial Supervisory Service do not provide enough detail on financial firms’ crypto activities.
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What links already connect South Korean banks and crypto platforms?
Rules introduced in 2024 require exchanges to hold customer cash deposits at banks, separate from their own funds. Jeonbuk Bank also began offering bitcoin-backed corporate loans in October.
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Has the Bank of Korea announced new crypto rules or sanctions?
No. The BOK says financial-stability risks have not materialized, and no sanctions or new rules have been decided. It plans to use the survey responses as internal reference data.
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