Bank of Korea Examines Virtual Asset Business Footprint and Risks at Banks and Securities Firms

on November 2, according to Yonhap, the Bank of Korea issued a "Survey on the Status of Financial Institutions' Entry into the Virtual Asset Market" to 18 banks, including KB, Shinhan, Hana, Woori, and NH Agricultural Cooperative, as well as 13 securities firms on October 23, with a response deadline of November 4. The survey covers each institution's virtual asset organizational structure and budget, business progress, core motivations for entering the market, investment amounts in related domestic and overseas enterprises, as well as risk assessments and response measures.

The survey also establishes stress scenarios, including the suspension of operations at South Korea's leading virtual asset exchange by market share due to incidents such as major hacking attacks, sharp declines in prices of Bitcoin and other assets alongside continued contraction in trading activity, and the impact when other financial institutions suffer significant losses from related incidents.

The Bank of Korea intends to use the results as internal reference material to address the trend of gradually incorporating virtual assets into the regulatory framework. The bank's Financial Stability Report released in June previously warned that attention should be paid to the impact of virtual asset price volatility on the supply and demand of stocks and foreign exchange.

A relevant official from the Bank of Korea stated that the growth prospects for the virtual asset market remain sound, and the financial industry is paying attention to this sector to expand new businesses and attract customers; the purpose of this survey is to proactively screen for potential risks.