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

CoinFeed, June 24 – According to Kookmin Ilbo, the Bank of Korea 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 grows, shocks from the crypto market could spill over into traditional stock and foreign exchange markets. The central bank's analysis noted that due to a more diversified investor base and evolving market structure, the potential for risk transmission from the crypto market to the traditional financial sector is increasing. The report pointed out that since South Korea has not yet approved spot or futures crypto ETFs and corporate participation is restricted, the direct impact on domestic financial markets 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 domestic stock and foreign exchange markets.