Bank of Korea Warns: Crypto Market Shock Could Spread to Traditional Financial Markets

According to the National Daily, the Bank of Korea (central bank) warned in its “First-Half 2026 Financial Stability Report” that shocks originating in the cryptocurrency market could spill over into traditional stock and foreign exchange markets, as correlations between cryptocurrency markets and traditional markets continue to strengthen. The central bank’s analysis indicates that the likelihood of risk transmission from cryptocurrency markets to the broader financial system is rising, driven by a more diversified investor base and evolving market structures.