The South Korean central bank warns that the impact of the cryptocurrency market may spread to traditional financial markets

According to the National Daily, the Bank of Korea (central bank) warned in the "Financial Stability Report for the First Half of 2026" that as the correlation between the cryptocurrency market and traditional markets increases, the impact of the crypto market may spill over into traditional stock and foreign exchange markets. The central bank's analysis points out that due to a more diversified investor base and the evolving market structure, the likelihood of the crypto market transmitting risks to the traditional financial sector is rising.

The report notes that since South Korea has not yet approved spot and futures cryptocurrency ETFs, and corporate participation is limited, the direct impact on the domestic financial market is currently still limited. However, the central bank also warned that if the scope of institutional and corporate participation expands in the future, significant price shocks in crypto assets could spread to the domestic stock and foreign exchange markets.