The amount of crypto-asset investment is not really big, compared with other equity markets, and local financial institutions' exposure to possible risks of digital assets is insignificant. Against this backdrop, we expect crypto-assets to have a limited impact on the South Korean financial market.

The Bank of Korea’s statement on the insignificant risk of cryptocurrencies posed on the traditional financial sectors was published in the very same week that the Financial Services Commission (FSC) of Korea revealed its stance on cryptocurrencies, which is “not opposed” and plans to align and follow the G20 vision of transnational crypto regulations. Over the first two quarters of 2018, the government of South Korea implemented a series of regulations to quell the crypto craze in after it reaches an unprecedented pitch in early January. However, the government is now focused more on the classification and revision of cryptocurrencies and regulations regarding cryptocurrencies.