The Bank of Korea (BOK) has started its inaugural survey of financial institutions to gauge exposure to cryptocurrency‑related risks, according to reporting by Cointelegraph. The questionnaire, distributed on Oct. 23, targets 18 banks and 13 securities brokerages and asks respondents to model the impact of three shock scenarios: a major hack that forces the country’s largest crypto exchange to suspend operations, a sharp and sustained decline in crypto prices, and heavy losses at another financial firm linked to digital assets.

Survey scope and timing

The BOK’s review marks the first systematic assessment of how South Korean banks and brokerages participate in the virtual‑asset market. Questions also cover crypto‑related staffing levels, budget allocations, business activities, and the size of investments in domestic and overseas crypto firms. Responses are due by the following Wednesday, giving regulators a snapshot of industry preparedness ahead of any major incident. The survey was launched before the recent $6.3 billion Binance hack, an event that underscores the relevance of the scenarios being examined.

Stablecoin pilots continue amid regulatory lag

Even as the BOK evaluates risk, South Korean financial groups are advancing stablecoin projects. KB Financial Group completed a won‑denominated stablecoin pilot in May, and Kakao Pay together with KakaoBank partnered with Fireblocks in September to explore digital‑asset infrastructure. The central bank has advocated for a bank‑led stablecoin issuance model, but disagreements over eligible issuers have slowed progress on the Digital Asset Basic Act.

Regulatory tightening on cybersecurity

The Financial Services Commission (FSC) has also moved to strengthen cybersecurity standards after audits revealed deficiencies at 130 of 555 financial firms. Proposed rules would require more frequent vulnerability assessments and heightened executive accountability, following security incidents at 16 companies, including crypto exchanges.

What to watch next

Analysts will monitor the BOK’s survey results for signs of systemic vulnerability, especially in light of the ongoing Binance hack investigation that U.S. authorities have linked to North Korean actors. Further developments in South Korea’s stablecoin regulatory framework and the FSC’s upcoming security mandates are also likely to shape how banks and brokerages engage with digital assets.