South Korea May Introduce Crypto Lending Guidelines Including Leverage Limits for Upbit Users

Key Points

1. South Korea's financial regulators will release comprehensive crypto lending guidelines focusing on crypto eligibility and risk disclosures.

2. A joint task force involving FSC, FSS, and DAXA is crafting the regulations to create a balanced framework.

3. The guidelines propose a maximum leverage limit of 4x collateral, with current practices varying by exchange (e.g., Bithumb allows up to 4x, Upbit up to 80%).

4. The Bank of Korea is expanding oversight by transforming its CBDC research teams into a Virtual Asset Team to address crypto lending risks.

5. The new rules aim to provide clearer lending rules, reducing exposure to high-risk leveraged products for investors.