South Korea's central bank has warned that digital currencies are not official payment methods under the Korean law and pose sizable risks to users.
 
Shin Ho-soon, deputy governor of the Bank of Korea, said in a speech at a forum in Seoul Thursday that there has not yet been an international consensus on the definition or nature of digital currencies such as bitcoin.
 
He said the high price volatility of such assets could give rise to illegal transactions, money laundering and losses for consumers.
 
Shin emphasized the need to preemptively safeguard against risks to cyber security, as various hacking schemes continue to emerge.