South Korea Tightens Regulations on Cryptocurrency Lending

South Korea has implemented stricter controls on cryptocurrency lending services, aiming to mitigate risks within the volatile crypto market. The Financial Services Commission (FSC) introduced a new guideline effective September 5th, capping interest rates for crypto loans at 20% and prohibiting leveraged loans exceeding the value of collateral. These measures are part of a broader effort to enhance user protection and promote market stability in South Korea’s crypto lending ecosystem.