Worried that unchecked crypto lending could threaten financial stability, South Korean regulators are preparing stricter oversight of leveraged digital asset loans.
A new FSC-FSS task force, including representatives from DAXA, will draft guidelines by next month, responding to products like Bithumb’s 4x leverage and Upbit’s 80% loan-to-value offerings.
With crypto’s notorious volatility, regulators fear a wave of defaults if prices crash—potentially sparking broader market stress. The rules aim to prevent excessive risk-taking while keeping the industry in check.
As one of the world’s most active crypto markets, South Korea’s move could set a precedent for global lending regulations.
