South Korea’s Regulatory Concerns Over Bitcoin Lending May Shift Users Offshore, Increasing Market Risks

Key Points

1. South Korea’s financial regulators highlight the high-leverage risks associated with crypto lending and margin trading.

2. Exchanges like Upbit and Bithumb are collaborating with regulators to develop voluntary self-regulation measures.

3. Stablecoin lending is being considered under Korea’s Lending Business Act due to its interest-bearing nature.

4. Overly stringent regulations may drive users to offshore platforms, undermining local market oversight.

5. South Korea is intensifying crypto sector oversight, with plans to approve spot crypto ETFs by late 2025.