Южная Корея вводит строгие правила для защиты инвесторов в сфере криптозаймов English translation: Headline: South Korea Implements Strict Rules to Protect Investors in Crypto Loans

On September 5, the Financial Services Commission of South Korea (FSC) published a set of guidelines for lending services on centralized cryptocurrency exchanges.

The FSC stated that the document introduces investor protection measures informed by global practices. The new regulations prohibit leveraged lending that exceeds the value of the collateral. Additionally, the interest rate has been capped at 20% annually.

Lending services are not allowed to demand loan repayments in fiat currency, as the regulator believes this violates lending legislation. Companies are mandated to only use their own capital for providing loans and are prohibited from circumventing the rules through third-party services.

The guidelines establish limits for each client based on their experience and transaction history. Platforms are required to notify users in advance about the risks of position liquidation.

Lending is only permitted for the top 20 cryptocurrencies by market capitalization or assets that are traded on at least three local exchanges. If a platform designates an asset as «warning,» lending against it must be halted.

The enforcement of these rules will be overseen by the Alliance of Digital Asset Exchanges in South Korea. The FSC plans to solidify these norms at the legislative level in the future.

It is worth noting that in August, the regulator demanded that local platforms suspend cryptocurrency lending operations.