Finance Minister Koo Yun-cheol speaks during a meeting to address rising financial market volatility with other top financial authorities, Seoul, Thursday. Yonhap
Top Korean financial authorities said Friday that recent cryptocurrency volatility is unlikely to spill over into broader financial markets, pledging to strengthen oversight to prevent market anxiety.
The remarks came after an internal transfer error last week at Bithumb, one of the country's largest crypto exchanges, which triggered a brief but sharp drop in digital asset prices.
"The recent increased volatility in cryptocurrency prices is unlikely to be directly transmitted to financial markets," the finance ministry said, citing assessments made during a meeting chaired by Finance Minister Koo Yun-cheol to address rising financial market volatility. The meeting was also attended by Bank of Korea Gov. Rhee Chang-yong and the heads of the Financial Services Commission and the Financial Supervisory Service.
The meeting participants said the government will review internal controls across cryptocurrency exchanges to ensure market anxiety does not escalate, according to the ministry.
On Feb. 6, the cryptocurrency exchange mistakenly transferred 620,000 bitcoins to 249 users participating in a promotional event. That amounted to an average of 2,490 bitcoins worth 244 billion won ($166 million) per user. Some recipients sold the bitcoin, causing a brief but sharp drop in prices.
The participants also said government bond yields rose slightly due to various factors and pledged to monitor market conditions while considering appropriate policy responses.
Source: Korea Times News
