Bank of Korea questions 31 financial firms over crypto hack, market risks

The Bank of Korea has launched a review of cryptocurrency-related risks across 31 financial institutions, asking how exchange shutdowns, falling digital asset prices and losses at other firms could affect their businesses. Summary The Bank of Korea has launched its first reported survey examining financial institutions’ cryptocurrency activities and associated risks. The review covers 18 banks and 13 securities firms, including South Korea’s five largest banks. The central bank is examining possible losses from exchange hacks, prolonged crypto downturns and financial institution failures. Institutions must submit their responses by November 4, according to Yonhap News Agency. The review comes as South Korean banks pursue stablecoin projects while lawmakers continue discussing digital asset regulations. According to Yonhap News Agency, the central bank began surveying 18 banks and 13 securities firms on October 23. The questionnaire examines their involvement in the virtual asset market, the money committed to related activities and existing measures for managing potential losses. The review is the central bank’s first reported survey specifically examining financial institutions’ p...