Bank of Korea quizzes 31 banks and brokers on crypto hack risk
Why it matters
The Bank of Korea has asked 31 banks and brokers how they would cope if the country's largest crypto exchange shut after a hack. Central banks are starting to measure crypto exposure, not just talk about it.
The short version
The Bank of Korea has sent its first crypto risk survey to 18 banks and 13 securities firms, including KB Kookmin and Shinhan, Yonhap reported via CoinDesk. It asks how they would fare if Korea's biggest crypto exchange shut after a hack or prices crashed. Answers are due on 4 November, and no new rules have been decided.
Here's what happened. South Korea's central bank wants to know how exposed its lenders are to crypto. On 23 October it sent a survey to 31 firms: 18 banks and 13 securities firms, including KB Kookmin, Shinhan, Hana, Woori and NH NongHyup. Yonhap reported it, and CoinDesk covered it on 3 November. Replies are due today.
It is the first survey of its kind from the Bank of Korea. Firms must walk through three scenarios. One: the country's largest crypto exchange stops working after a major hack. Two: prices fall sharply and trading stays weak for a long time. Three: another financial firm takes heavy crypto losses.
The central bank also asked about crypto teams, budgets, business plans and stakes in crypto companies at home and abroad. It says the reports it already gets lack enough crypto detail.
The timing is pointed. Days after the survey went out, Binance suffered its $6.3bn hack. Korean banks are also close to the exchanges: under 2024 rules, exchanges must keep customers' cash at banks.
The Bank of Korea says it does not see financial stability risks yet, and no sanctions or new rules have been decided.
Where this comes from
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.