• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
Crypto Leverage Under Fire: South Korea Set to Tighten Lending Rules

Crypto Leverage Under Fire: South Korea Set to Tighten Lending Rules

Samuel Edyme
by Samuel Edyme
2 months ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

South Korean financial regulators are preparing new guidelines to address cryptocurrency lending services, particularly those offering high leverage to retail investors. The initiative, announced on Thursday, comes amid growing concerns about investor protection and potential risks tied to volatile market conditions.

According to reports from Yonhap News Agency (YNA), the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have established a joint task force to develop a regulatory framework targeting crypto lending practices.

The move follows recent offerings by major domestic exchanges, such as Bithumb and Upbit, which introduced high-risk lending options allowing users to borrow significant amounts relative to their collateral.

Related Reading: New Crypto Lab Unit Signals Bank Of Korea’s Shift From Research To Regulation

Joint Task Force to Draft New Lending Guidelines

The task force will include members from the FSC, FSS, and the Digital Asset eXchange Alliance (DAXA), a self-regulatory body composed of five leading South Korean exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax.

The primary goal of the group is to establish clear rules governing leveraged lending products, which have recently seen increased adoption without standardized investor safeguards.

As noted in YNA’s report, Bithumb has allowed users to borrow up to four times their deposited collateral, while Upbit provided loans amounting to 80% of users’ asset values.

Regulators fear that such high leverage could expose retail investors to rapid and severe losses during market swings. The forthcoming guidelines are expected to address leverage limits, asset and user eligibility criteria, mandatory risk disclosures, and enhanced transparency for digital asset lending activities.

The regulators have also urged crypto exchanges to proactively review services that pose high risk or lack legal clarity. This includes offerings with excessive leverage and those enabling fiat-based lending, which may fall into regulatory grey areas.

According to the FSC, the goal is to create a structured approach that can serve as a foundation for broader digital asset legislation in the future.

Part of a Broader Push for Crypto Oversight

The establishment of the lending task force aligns with South Korea’s wider efforts to strengthen oversight in the digital asset sector.

Earlier this year, the Bank of Korea announced the formation of a Virtual Asset Team by integrating its central bank digital currency (CBDC) research division with a broader mandate to monitor stablecoins and other crypto-related developments.

The team will collaborate with government agencies during the upcoming legislative process for cryptocurrencies. Global regulators have also been paying closer attention to crypto lending following high-profile collapses of platforms like Celsius and BlockFi in 2022, which left many investors facing significant losses.

Related Reading: Stablecoins Clash: South Korea’s Biggest Parties Propose Rival Legislation

South Korea’s proposed rules aim to prevent similar events by setting clearer boundaries on lending practices within the country’s growing digital asset market.

The draft guidelines are expected to be released next month, with industry stakeholders anticipating stricter requirements on how crypto exchanges manage leveraged lending services.

The global crypto market cap valuation on TradingView
The global digital currency market cap valuation. | Source: TradingView.com

Featured image created with DALL-E, Chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Samuel Edyme

Samuel Edyme

Follow

Edyme is a writer, a content writer that specialises in writing about the crypto realm. Asides Bitcoinist and NewsBTC, Edyme's writing has been featured in top sites such as Blockchain.News, CoinMonk, Blockchain Reporter, Bitcoin Insider among others.

Full Profile

Related Posts

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (October 3)

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (October 3)

7 minutes ago
Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (October 3)

Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (October 3)

8 minutes ago
Michael Saylor’s Big Bet: The Strategy Behind Strategy’s Bitcoin Accumulation

Michael Saylor’s Big Bet: The Strategy Behind Strategy’s Bitcoin Accumulation & Bitcoin Hyper’s Opportunity

54 minutes ago
crypto, thailand

Thailand To Expand Crypto ETF Lineup Beyond Bitcoin In Early 2026 – Report

2 hours ago
Crypto

US Senator Blasts Crypto’s Environmental Impact, Warns Of Impending Reckoning

3 hours ago
token2049

TOKEN2049 Singapore 2025 Kicks Off With Robinhood, GEMtrust DAO, and High-Profile Sessions

4 hours ago

Premium Sponsors

Press Releases

  • 狗狗幣引領『Uptober』Meme...

    4 hours ago
  • ตัวละคร Snorter ขนฟูโต้คลื่นบนเซิร์ฟบอร์ดสีชมพู

    จับตา Uptober!...

    23 hours ago
  • Tapzi Delivers Strategy-Based Web3 Gaming, Setting It Up As One of 2025’s Best New Crypto.

    Tapzi Delivers Strategy-Based Web3 Gaming, Setting It Up As...

    1 day ago
  • най-добрите криптовалути

    Най-добрите криптовалути за...

    2 days ago
  • As the Tapzi Fundraiser Continues to Generate Buzz, Could It Be One of This Year’s Best Crypto Presales?

    As the Tapzi Fundraiser Continues to Generate Buzz, Could...

    2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.