South Korea to target leveraged crypto lending services with new rules

Key Points

1. A joint task force involving the FSC, FSS, and DAXA will create regulations for crypto lending services in South Korea.

2. Bithumb and Upbit have introduced lending services with high leverage, prompting regulatory scrutiny.

3. The task force will focus on leverage limits, user and asset eligibility, risk disclosures, and transparency requirements.

4. DAXA is a self-regulatory organization comprising major South Korean crypto exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax.

5. The move follows concerns over high leverage in crypto lending and aims to enhance oversight in the sector.