Bank of Korea to Investigate Banks and Securities Firms' Virtual Asset B

The Bank of Korea on October 23 sent a survey titled "Survey on the Current State of Financial Institutions' Entry into the Virtual Asset Market" to 18 banks—including KB, Shinhan, Hana, Woori, and NH NongHyup—and 13 securities firms, with responses due November 4. The survey covers institutions' virtual asset organizations and budgets, business progress, key motives for market entry, investment amounts in domestic and foreign crypto-related companies, and risk assessments and countermeasures. It also includes stress scenarios such as Korea's largest crypto exchange suspending operations after a major hack, sharp Bitcoin price declines with shrinking trading volume, and contagion from losses at other financial institutions. The central bank will use the results as internal reference material as virtual assets are gradually brought into the regulatory framework, following its June financial stability report warning about crypto price volatility's impact on stock and foreign exchange supply and demand. A Bank of Korea official said the virtual asset market's growth outlook remains valid and financial institutions are eyeing the space for new business and customer acquisition, with the survey aimed at identifying potential risks in advance. Watch for the survey results and any follow-up regulatory guidance from the central bank.