South Korean Authorities Announce Cryptocurrency Lending Guidelines

The Financial Services Commission (FSC) of South Korea announced new guidelines on cryptocurrency lending on the 5th.

These guidelines, based on international regulations, are designed for centralized exchanges (CEXs) and aim to limit the cryptocurrencies eligible for lending. The measures are intended to enhance user protection and stabilize the market.

The announcement comes against a backdrop of previously unclear regulatory guidelines for lending. There were concerns that, without clear regulations, users faced significant risks of substantial losses, which had led to a temporary suspension of lending services.

The new guidelines specify which cryptocurrencies can be lent...