The Bank of Korea has launched its first-ever survey of how banks and brokerages are involved in the cryptocurrency market, as the central bank seeks to understand how the country's financial institutions would handle major risks tied to digital assets.

The survey began on Oct. 23 and covers 31 financial institutions — 18 banks and 13 brokerages — according to The Korea Herald and Yonhap, citing financial industry sources. The banks covered include the country's five major lenders: KB Kookmin, Shinhan, Hana, Woori and NH NongHyup Bank.

What the Survey Asks

The questionnaire asks about each firm's crypto staffing, budgets and business plans, as well as why each firm decided to enter the market. Firms must report how much they have invested in domestic and overseas crypto companies. The survey also covers each institution's risk assessments and the risk controls it has in place.

One scenario asks how a firm would be affected if South Korea's largest crypto exchange by market share stopped operating for a period of time, with the question citing a major hack or a similar event as the cause. Other questions examine a steep drop in cryptocurrency prices — such as bitcoin — followed by a long trading slump. The survey additionally asks about the potential fallout if another financial firm suffered heavy losses from a crypto incident. The questions resemble a stress test — the shock-scenario exercise supervisors use to gauge how balance sheets hold up under strain.

The survey was launched before last week's $6.3 billion hack at Binance, the world's largest crypto exchange, an attack that US authorities have blamed on North Korean hackers — the sort of hack-driven disruption the questionnaire asks firms to model.

Banks Prepare as Laws Move Slowly

"Financial institutions are making their own preparations even as virtual asset legislation is moving more slowly than the market expected," a Bank of Korea official told The Korea Herald.

Another official said financial firms already report to the Financial Supervisory Service, but that coverage of crypto activities is still lacking. The central bank is gathering basic data from individual banks and brokerages.

South Korean firms have continued to test stablecoin services. KB Financial Group completed a won-based stablecoin pilot in May, while Kakao Pay and KakaoBank partnered with Fireblocks in September. The Bank of Korea has pushed for bank-led stablecoin issuance, but disputes over which firms should be allowed to issue stablecoins have slowed progress on the proposed Digital Asset Basic Act. The banks answering the questionnaire are the kind of institutions the central bank's bank-led model would position as stablecoin issuers.

In its June Financial Stability Report, the central bank said links between crypto and traditional markets have grown stronger. It found that the link with the stock market has stayed above past levels since the US introduced spot ETFs in 2024. Last November, the bank also warned that won-based stablecoins could bring risks, including short-term interest rate swings and coin runs — redemption surges akin to bank runs — that could spread risk into traditional markets.

Regulators have also stepped up cybersecurity checks across the financial sector. In October, the Financial Services Commission found security problems at 130 of 555 financial companies. The commission proposed tougher rules, including more frequent vulnerability checks and greater executive accountability. The plan followed security incidents at 16 companies, including crypto exchanges.

Financial firms are reportedly due to submit their survey responses to the Bank of Korea on Wednesday. The answers will give the central bank its first unified picture of crypto involvement across the country's major banks and brokerages, arriving while the Digital Asset Basic Act remains stalled.