Bank of Korea probes 31 firms on crypto risks — SkimNews
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- Bank of Korea launched its first survey of 18 banks and 13 brokerages on October 23 to assess vulnerabilities to crypto-related risks such as exchange shutdowns or market crashes
- Bank of Korea asked institutions about their staffing, budgets, investments in domestic and overseas crypto firms, and operational plans if South Korea’s largest exchange suspended services after a hack
- Financial Services Commission proposed stricter cybersecurity rules in October after finding security deficiencies at 130 of 555 financial companies, including 16 involved in crypto incidents
- KB Financial Group completed a pilot of a won-denominated stablecoin in May, while Kakao Pay and KakaoBank partnered with Fireblocks in September to develop digital asset infrastructure
- Bank of Korea supports bank-led stablecoin issuance, but progress on the Digital Asset Basic Act has stalled due to disputes over which institutions can issue them
Why it matters: With crypto exposure growing and North Korean hackers tied to a $6.3B Binance breach, the central bank’s review forces financial firms to quantify risks they’ve already taken. The outcome could shape who gets to issue stablecoins and how tightly crypto-linked operations are regulated, affecting billions in market value and national financial security.
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