South Korea's central bank asks 31 firms how a major crypto hack would hit them
Bank of Korea surveys banks and brokerages on crypto shock scenarios
South Korea's central bank has asked the country's banks and securities firms how they would be affected if the largest crypto exchange (a platform for trading digital assets like bitcoin) stopped operating after a hack. The Bank of Korea (BOK) sent the survey to 18 banks and 13 securities firms on Oct. 23, with responses due Nov. 4, according to Yonhap, as reported by CoinDesk. It is the first time the BOK has run a survey like this.
The named banks include KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
Key points
- The survey went to 18 banks and 13 securities firms on Oct. 23; answers are due Nov. 4.
- It asks about three shock scenarios: a top-exchange shutdown after a hack, a sharp crypto price fall followed by a long trading slump, and heavy crypto-related losses at another financial institution.
- It also asks each firm about its crypto teams, budgets, business plans, and investments in domestic and overseas crypto companies.
- The BOK says existing reports lack crypto detail and does not see financial-stability risks as materialized yet. No sanctions or new rules have been decided.
- Context in the report: Binance, the world's largest crypto exchange, suffered a $6.4 billion hack.
What the survey asks
According to The Herald Business, cited by CoinDesk, the questionnaire presents the exchange-shutdown scenario alongside a sharp fall in crypto prices followed by a prolonged trading slump, and heavy crypto-related losses at another financial institution. The BOK plans to use the responses as internal reference data, per the Herald.
A BOK official told The Herald Business that existing business reports and information shared with the Financial Supervisory Service give the central bank too little detail on firms' crypto operations, which is what the exercise aims to fix.
What the Bank of Korea says about risk
The central bank is not signaling that trouble has already arrived. Current laws still limit how far financial firms can go into crypto, and the BOK does not consider risks to financial stability to have materialized, an official told local outlet Alpha Economy, according to the CoinDesk report.
Another BOK official told the Herald that financial institutions are making their own preparations, even as crypto legislation moves more slowly than the market expected. No sanctions or new rules have been decided.
Why banks are already tied to crypto
Some connections between banks and crypto platforms already exist in South Korea. Under customer-protection rules introduced in 2024, exchanges must keep customers' cash deposits at banks, separate from the exchange's own funds. The banks must return that money directly to customers if an exchange goes bankrupt or loses its registration.
Bank lending is also moving into crypto: Jeonbuk Bank began offering bitcoin-backed loans to corporate clients in October, with a registered crypto service provider holding the collateral. If a borrower defaults, the bank would seek a court-ordered sale of the bitcoin to recover its money.
What is confirmed and what is reported
Confirmed through the reporting: the survey's existence, its recipients (18 banks and 13 securities firms), the Oct. 23 send date, the Nov. 4 response deadline, and the topic areas listed above, as attributed to Yonhap and The Herald Business. The BOK officials' statements are reported through local outlets, not direct BOK publications in this material. The $6.4 billion Binance hack figure comes from the CoinDesk article's context. Consequences beyond the stated plan — internal reference data only, no decided sanctions or rules — are not part of the reporting.
What happens next
Firms' responses are due Nov. 4. The BOK intends to use them as internal reference data; no new rules or sanctions have been announced.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.