The Bank of Korea warns that the impact of the cryptocurrency market may spread to traditional financial markets According to the National Daily, the Bank of Korea (PBOC) 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, the impact of the cryptocurrency market may spill over to traditional stock and foreign exchange markets. The central bank analysis points out that due to a more diversified investor base and constantly evolving market structure, the possibility of the cryptocurrency market transmitting risks to the traditional financial sector is increasing. The report points out that due to the fact that South Korea has not yet approved spot and futures encrypted ETFs, and corporate participation is restricted, the direct impact on the domestic financial market is still limited. But the central bank also warns that if the scope of participation of institutions and enterprises expands in the future, the significant price shock of encrypted assets may spread to the domestic stock and foreign exchange markets.