South Korea will limit the maximum interest rate for cryptocurrency lending to 20% and prohibit leveraged lending

ChainCatcher news, according to Theblock, South Korean financial regulators have released new guidelines for local cryptocurrency exchanges' lending services to enhance investor protection.

According to the new regulations, the upper limit for cryptocurrency lending interest rates is set at 20%, and leveraged lending beyond the value of collateral is explicitly prohibited. In addition, the guidelines stipulate that only the top 20 cryptocurrencies by market capitalization, or cryptocurrencies traded on three or more platforms, can be used for lending services. These measures aim to regulate the South Korean cryptocurrency lending market and reduce investor risk.