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South Korea’s central bank has asked 18 banks and 13 securities firms how a major crypto exchange hack could affect their businesses, with responses due November 4. The survey examines a hypothetical disruption, not a newly reported hack or a finding that financial stability risks have already materialized.
The Bank of Korea sent the questionnaire on October 23, CoinDesk reported Tuesday, November 3, citing Yonhap and other South Korean outlets. The institutions include KB Kookmin, Shinhan, Hana, Woori and NH NongHyup. The report described it as the central bank’s first survey of this kind.
One scenario asks what would happen if the country’s largest crypto exchange halted operations following a major hack. Other questions cover a sharp fall in crypto prices followed by a prolonged trading slump, and large crypto-related losses at another financial institution, according to local reporting summarized by CoinDesk.
The survey also seeks information about firms’ crypto teams, budgets, business plans and investments in domestic and overseas crypto companies. A central bank official told The Herald Business that existing business reports and information shared with the Financial Supervisory Service did not provide enough detail about those activities, CoinDesk reported.
The distinction between mapping exposure and announcing a crisis is important. An official told Alpha Economy that current laws still restrict financial firms’ crypto activities and that the Bank of Korea did not consider risks to financial stability to have materialized, according to CoinDesk. The exercise should not be read as confirmation of losses at the surveyed firms.
The central bank plans to use the responses as internal reference data, the report said. No sanctions or new rules have been decided. The October 23 dispatch date and November 4 response deadline describe the survey’s timetable, not the date of an exchange failure.
JBizNews Desk | Seoul, South Korea
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