The Bank of Korea has issued a warning that disruptions in the cryptocurrency market could spill over into traditional financial markets, including stocks and forex. In its Financial Stability Report for the first half of 2026, the central bank highlighted the growing interconnection between crypto and traditional markets. The report noted that the increasing diversity of investors and evolving market structures are raising the risk of crypto market volatility affecting traditional finance. While the direct impact on South Korea's financial markets is currently limited due to the absence of approved crypto ETFs and restricted corporate participation, the bank cautioned that expanded institutional and corporate involvement could lead to significant crypto price shocks affecting domestic stock and forex markets.