TechFlow news, July 22 — According to Edaily, South Korea's financial regulators plan to impose strict regulations on cryptocurrency exchanges' "coin lending" services, introducing rules comparable to those in the stock market as part of the second phase of virtual asset legislation. Currently, major exchanges such as Upbit and Bithumb offer services allowing investors to borrow up to four times the value of their collateral in cryptocurrencies, effectively creating trading structures similar to stock short-selling. With 90% of South Korea's virtual asset market consisting of individual investors, regulators are concerned that excessive leverage could pose significant risks. Experts urge the prompt establishment of interim guidelines before legislation is finalized (expected to take 1–2 years), restricting leverage levels and setting eligibility criteria to prevent investor losses.
Risk Disclosure: This website's content is not investment advice and offers no trading guidance or related services. Per regulations from the PBOC and other authorities, users must be aware of virtual currency risks. Contact us / [email protected] ICP License: 琼ICP备2022009338号
