The Bank of Korea warns that shocks in the crypto market may spill over into the traditional financial market.
ChainCatcher News: According to a report by Rodong Sinmun, the Bank of Korea (the central bank) warned in its "Financial Stability Report for the First Half of 2026" that as the correlation between the cryptocurrency market and traditional markets increases, shocks from the crypto market could spill over into traditional stock and foreign exchange markets. The central bank's analysis pointed out that, due to an increasingly diversified investor base and the evolving market structure, the likelihood of risk transmission from the crypto market to the traditional financial sector is rising.
The report indicated that, since South Korea has not yet approved spot or futures crypto ETFs and corporate participation remains restricted, the direct impact on the domestic financial market is still limited for now. However, the central bank also warned that if institutional and corporate participation expands in the future, significant price shocks in crypto assets could spread to the domestic stock and foreign exchange markets.
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