South Korea’s central bank is asking 31 financial institutions how deeply they are involved in crypto and how they would respond to a major disruption, from an exchange shutdown to losses spreading between firms.
- The survey covers 18 banks and 13 securities firms.
- Responses are due November 4. The reporting does not specify the year.
- The scenarios are hypothetical, and the survey began before a later Binance security-breach disclosure.
What the Bank of Korea wants to know
The Bank of Korea began the survey on October 23, according to Yonhap News Agency. It covers 18 banks and 13 securities firms, including the country’s five largest banks: KB Kookmin, Shinhan, Hana, Woori and NH NongHyup. Institutions are expected to submit their responses by November 4. The reporting does not specify the year for either date.
The questionnaire asks about crypto-related departments, staffing and budgets, as well as existing digital-asset businesses and possible projects. It also asks about investments in domestic and overseas crypto companies, including the amounts committed, and how firms identify and manage risks.
Institutions are asked to consider several hypothetical shocks: an exchange suspending operations after a major security breach, a sharp fall in crypto prices followed by a prolonged decline in trading, and losses at one institution affecting others. The questionnaire names no exchange and does not suggest that a shutdown is expected.
A Bank of Korea official, whose name was not provided in the reporting, described the aim this way:
“The purpose is to take stock of the current situation and get an early read on what lies ahead, ”
Yonhap described the review as the first reported survey specifically examining financial institutions’ participation in the cryptocurrency industry. The Bank of Korea says conventional reporting does not fully capture firms’ digital-asset activity. The survey could give the central bank a clearer picture, but it has not announced any new rules or supervisory action based on the responses.
The survey predates Binance’s disclosure
The Bank of Korea began its survey on October 23. A Binance security-breach disclosure was reported on October 29, six days later. The central bank did not describe the survey as a response to Binance. The reporting does not specify the year for either date. The amount associated with the Binance disclosure is not included here because its meaning could not be established from the available information.
A hypothetical exchange failure in a questionnaire is not evidence that a particular exchange was expected to close. Nor does the timing establish what prompted the central bank to begin the review.
The survey looks beyond any single incident. Financial firms can be exposed through direct investments, business relationships, payment services or other connections to digital assets. The Bank of Korea is asking institutions to map those links and consider how problems might spread. The firms’ answers have not been published, so their actual exposure and readiness remain unknown.
Stablecoin experiments add to the need for a clearer picture
South Korean financial firms are exploring stablecoins and blockchain-based payments while rules for the sector remain unsettled. A stablecoin is a digital asset designed to hold a relatively stable value, often by tracking a currency. The backing and operating arrangements for the projects described below have not been disclosed.
In September, Kakao Pay and KakaoBank signed an infrastructure agreement with Fireblocks to explore digital-asset distribution and run technical trials. They did not announce a commercial stablecoin launch. In October, Gwangju Bank and Toss completed stablecoin payment tests using QR codes and connected payment applications. Participants could transfer stablecoins between digital wallets through banking and merchant-payment interfaces. The reporting does not identify the stablecoin used or describe the tests as a live payment service.
MoonPay entered the Korean market in September and said it planned to work with local financial institutions. Woori Bank, KB Financial Group and KakaoBank were named as potential cooperation partners, not confirmed partners. Possible areas included stablecoin payments, remittances and digital-asset infrastructure, subject to regulatory requirements.
South Korea is also debating whether banks should be allowed to issue won-denominated stablecoins or whether nonbank companies should be able to do so. In a separate November 2025 report, the Bank of Korea warned of possible risks, including collateral shortages, short-term interest-rate volatility and stress in financial markets. Those are the central bank’s stated concerns. The details available here do not explain how they would apply to any specific project. The central bank has also warned of risks from non-bank stablecoins.
Why links between crypto and traditional markets matter
The Bank of Korea has previously examined the relationship between crypto markets and conventional finance. The Korea Herald’s account of the central bank’s June financial stability report says crypto and stock markets moved more closely together during periods of financial stress, including the COVID-19 pandemic and global interest-rate increases in 2022. The report also said correlations remained elevated after U.S. spot Bitcoin exchange-traded funds began trading in 2024.
Correlation means markets have tended to move together over a given period. It does not prove that one market caused movements in the other. Still, closer links may matter to institutions that hold digital assets, serve crypto businesses or rely on shared financial infrastructure. The Bank of Korea’s survey asks firms to consider those connections without claiming that losses will necessarily spread from one institution to another.
Key questions and answers
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Which financial institutions are being surveyed?
The Bank of Korea is surveying 18 banks and 13 securities firms, including South Korea’s five largest banks.
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What risks does the questionnaire examine?
It asks firms to assess a hypothetical exchange shutdown after a security breach, a prolonged crypto-market downturn and losses at one institution affecting others.
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Was the survey launched in response to Binance’s disclosure?
The survey began six days before the October 29 disclosure, and the Bank of Korea did not describe it as a response. The timing alone does not establish what prompted the survey.
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How much crypto exposure do the surveyed firms have?
The available public information does not provide the firms’ exposure or investment totals. The questionnaire asks about their activities, investments and risk controls.
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Does the survey mean new crypto rules are coming?
Not by itself. The Bank of Korea has not said what, if any, action will follow its review of the responses.
The survey’s value will depend on whether it uncovers exposures that conventional financial reporting misses, and whether that information leads to clearer oversight without treating exploratory projects as proof of sound risk management.
