Bank of Korea Warns: Crypto Market Shocks Could Spill Over into Traditional Financial Markets

PANews, June 24 – According to a report by National Daily, the Bank of Korea (central bank) warned in its "Financial Stability Report for the First Half of 2026" released today that as the correlation between the cryptocurrency market and traditional markets continues to strengthen, shocks in the crypto market could spill over into traditional stock and foreign exchange markets.

The central bank's analysis pointed out that due to a more diversified investor base and evolving market structures, the potential for risks in the crypto market to transmit to the traditional financial sector is increasing. The report noted that because South Korea has not yet approved spot or futures crypto ETFs and corporate participation is restricted, the direct impact on the domestic financial market remains 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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