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Bank of Korea Weighs How Its Banks Would Weather a Crypto Exchange Hack
The central bank's first such survey, per The Herald Business, asks 18 banks and 13 brokerages how they'd fare if a hack halted Korea's No. 1 crypto exchange, prices slumped or another firm took heavy losses. Answers are due Nov.
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South Korea's central bank has sent a questionnaire to 31 financial firms, 18 banks and 13 securities firms, asking how they would fare if the country's largest crypto exchange by market share halted operations briefly after a major hack. According to Yonhap, requests went out on Oct. 23 with responses due Nov. 4. The exchange is not named, and the bank has not published the survey. Three scenarios are included: the outage, a sharp price drop followed by a prolonged trading slump, and heavy crypto losses at another institution. The form also covers each firm's crypto teams, budgets, and risk controls. An official said the answers will serve as internal reference material.
Why it matters: The survey shows regulators examining how a single exchange outage could spread losses to traditional lenders and brokers as they expand into crypto.
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