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South Korean Financial Regulatory Department Introduces Virtual Asset Loan Service Guidelines, Prohibiting Excessive Leverage Loans
Summary: According to reports, the South Korean financial regulatory department has introduced the first set of guidelines for virtual asset loan services. Due to increased risks for investors from intensified competition among exchanges, regulators have completely banned leverage and cash loans, set individual limits and fee caps, and blocked similar short-selling activities. On the 5th, the ...
According to reports, the South Korean financial regulatory department has introduced the first set of guidelines for virtual asset loan services. Due to increased risks for investors from intensified competition among exchanges, regulators have completely banned leverage and cash loans, set individual limits and fee caps, and blocked similar short-selling activities. On the 5th, the South Korean Financial Services Commission announced the implementation of the self-regulatory 'Virtual Asset Loan Business Guidelines' developed by the Financial Supervisory Service and DAXA. The new guidelines focus on three core areas: service scope restrictions, user protection, and market stability. The guidelines explicitly prohibit excessive leverage loans and Korean won cash loans, requiring exchanges to use their own assets to provide services and prohibiting third-party entrusted or indirect lending models.
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Link: South Korean Financial Regulatory Department Introduces Virtual Asset Loan Service Guidelines, Prohibiting Excessive Leverage Loans [Copy]
