Government: "Tighten internal controls at crypto exchanges and strengthen market surveillance"

The government assessed that even with the recent increase in price volatility in the virtual asset (cryptocurrency) market, the likelihood of a direct spillover to the broader financial market is limited. However, in connection with the recent “Bithumb incident,” it decided to tighten checks on exchanges’ internal controls and strengthen market surveillance.

Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, convened a “market conditions review meeting” on the 13th at the Korea Federation of Banks in Jung-gu, Seoul, with Bank of Korea Governor Rhee Chang-yong, Financial Services Commission Chairman Lee Eok-won, and Financial Supervisory Service Governor Lee Chan-jin, and the participants shared these views, the ministry said.

To prevent market anxiety factors—such as a loss of confidence in virtual assets stemming from the Bithumb incident—from spreading, attendees agreed to conduct an intensive review of exchanges’ overall internal control systems. They also decided to pursue fundamental institutional improvements while stepping up market surveillance against unfair trading and other misconduct.

As for the domestic financial market, they assessed that while stock prices are on an upward trend, volatility has widened somewhat. In the bond market, they analyzed that Treasury bond yields are facing upward pressure due to factors such as rising interest rates in Japan and supply-demand burdens.

Accordingly, relevant agencies decided to significantly strengthen monitoring across the bond market, including Korean Treasury bonds, centering on the market conditions review meeting. They also plan to frequently check supply-demand conditions through a consultative body of bond-issuing institutions and discuss response measures.

Deputy Prime Minister Koo said, “External risk factors, including the direction of major economies’ monetary policy and U.S. tariff policy, still remain,” adding, “Even during the upcoming Lunar New Year holiday period, I ask each institution to stay vigilant and closely monitor market conditions.”