Bank of Korea surveys 31 financial firms on cryptocurrency exposure and hack risks

The Bank of Korea launched its first reported survey examining cryptocurrency risk across 31 major financial institutions, including KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup. Distributed on October 23, 2026, with responses due by November 4, 2026, the review queries banks and brokerages on internal budgets, staffing, and exposure. It presents stress scenarios involving a major hack shutting down the country's top exchange, sharp market slumps, and peer contagion. The probe comes as South Korean firms advance stablecoin initiatives despite legislative delays.

Launch and scope of the central bank survey

• ▪The Bank of Korea requested that the 31 surveyed financial institutions submit their responses to the cryptocurrency risk survey by November 4, 2026.
• ▪The Bank of Korea launched its first reported survey to 31 financial institutions regarding cryptocurrency market participation and risk exposure
• ▪A Bank of Korea official stated that the central bank is conducting the risk survey to establish a baseline understanding of financial institutions' digital asset activities, as regular reporting to the Financial Supervisory Service lacks crypto-specific details.
• ▪The Bank of Korea survey includes South Korea's five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—alongside 13 securities companies and other lenders.

Survey questions on institutional crypto involvement

• ▪The Bank of Korea's questionnaire asks financial institutions to provide details regarding their dedicated cryptocurrency teams, staffing levels, budget allocations, and risk management framework.
• ▪The Bank of Korea survey requires banks and brokerages to disclose their existing digital asset businesses, planned projects, motives for market entry, and capital invested in domestic and overseas crypto companies.

Risk scenarios assessed in the survey

• ▪The Bank of Korea's survey asks financial firms to evaluate the impact if South Korea's largest cryptocurrency exchange by market share temporarily suspends operations following a major hack or security breach.
• ▪The Bank of Korea survey includes a scenario asking financial institutions to assess operational risks stemming from a steep decline in Bitcoin prices accompanied by a prolonged slump in trading volume.
• ▪The central bank's questionnaire asks financial institutions to evaluate contagion risks, specifically how heavy crypto-related losses at one financial firm could affect other institutions across the sector.

Binance security breach

• ▪The Bank of Korea distributed its crypto risk survey to financial firms six days before Binance disclosed a $6.3 billion security breach on October 29, 2026.
• ▪United States authorities attributed the $6.3 billion Binance security breach to North Korean hackers.

Financial Services Commission security rules

• ▪South Korea's Financial Services Commission proposed tougher security requirements in October 2026, including more frequent vulnerability assessments and greater executive accountability for financial firms.
• ▪South Korea's Financial Services Commission reported in October 2026 that 130 of 555 audited financial companies displayed security deficiencies, with confirmed breaches occurring at 16 firms, including two virtual asset businesses.

Stablecoin initiatives by South Korean institutions

• ▪Gwangju Bank and Toss completed testing for QR code-based stablecoin payments in October 2026, enabling transfers across banking and merchant interfaces.
• ▪KB Financial Group completed a won-denominated stablecoin pilot for offline payments in May 2026, while Kakao Pay and KakaoBank partnered with Fireblocks in September 2026 for digital asset infrastructure.
• ▪South Korean commercial banks and technology firms have continued testing stablecoin applications, despite legislative delays surrounding the proposed Digital Asset Basic Act.

Bank of Korea stability reports

• ▪The Bank of Korea's June 2026 Financial Stability Report noted that cryptocurrency and stock market correlations remained elevated after spot Bitcoin exchange-traded funds began trading in the United States in 2024.
• ▪The Bank of Korea's June 2026 Financial Stability Report noted that cryptocurrency and traditional stock market movements become more closely correlated during periods of financial stress, such as during the COVID-19 pandemic and 2022 rate hikes.