South Korea’s Financial Services Commission introduced new rules for crypto lending, banning leveraged loans, capping interest at 20% and restricting use to the top coins.
South Korea’s Financial Services Commission (FSC) set new rules for crypto lending.
The FSC said on Friday that interest on crypto lending is now capped at 20% in South Korea, and leveraged lending is not allowed. Crypto lending is restricted to the top 20 tokens by market capitalization or those listed on at least three won-based exchanges.
The new rules follow late July reports that South Korea’s financial regulators had plans to release guidelines on cryptocurrency lending services to tighten oversight and protect investors. The move also followed the introduction of leveraged lending services by local crypto exchanges.
