{"id":50199,"date":"2025-09-05T12:46:31","date_gmt":"2025-09-05T09:46:31","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=50199"},"modified":"2025-09-05T12:46:31","modified_gmt":"2025-09-05T09:46:31","slug":"south-korea-crypto-loan-20-percent-leverage-ban","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/south-korea-crypto-loan-20-percent-leverage-ban\/","title":{"rendered":"South Korea Caps Crypto Loan Interest at 20%, Bans Leverage"},"content":{"rendered":"<p><span data-contrast=\"auto\"><strong>South Korea<\/strong>\u00a0Financial Services Commission (FSC) issued new guidelines for crypto lending services. The rules aim to protect investors and clarify local exchange operations.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Under the new framework, leveraged loans exceeding collateral value are prohibited. Interest rates are capped at 20%. Additionally, lending is allowed only for the top 20 cryptocurrencies by market capitalization or coins listed on at least three licensed local exchanges.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-crypto-loan-20-percent-leverage-ban\/#New_Rules_for_Crypto_Lending_Services\" title=\"New Rules for Crypto Lending Services\u00a0\">New Rules for Crypto Lending Services\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-crypto-loan-20-percent-leverage-ban\/#Implementation_Overseen_by_DAXA\" title=\"Implementation Overseen by DAXA\u00a0\">Implementation Overseen by DAXA\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"New_Rules_for_Crypto_Lending_Services\"><\/span><span data-contrast=\"auto\">New Rules for Crypto Lending Services<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-contrast=\"auto\">The FSC stated in a press release that the guidelines reference global cases and define virtual asset lending clearly. The rules also include enhanced user protection measures.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Products requiring users to repay loans in cash are restricted, as they violate existing credit regulations. Furthermore, companies offering lending services must use their own capital. Third-party services cannot be used to bypass these rules.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The guidelines require lending limits based on user experience and transaction history. Moreover, investors must be informed in advance if their positions face liquidation risks. This ensures users avoid sudden losses.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Implementation_Overseen_by_DAXA\"><\/span><span data-contrast=\"auto\">Implementation Overseen by DAXA<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-contrast=\"auto\">The new rules apply only to selected <strong>cryptocurrencies<\/strong>. If a coin is flagged as a precautionary measure by exchanges, lending services for that asset must be halted.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The FSC confirmed that the Digital Asset Exchange Alliance (DAXA) will monitor compliance. The commission plans to legislate the rules based on implementation results.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The guidelines follow the August 19th suspension of credit services at local exchanges. Platforms like Upbit and Bithumb had launched various lending products. However, FSC\u2019s directive required them to halt these services.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\"> Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don\u2019t forget to follow us on\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noopener\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Telegram<\/strong><\/a>,\u00a0<a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noopener\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">YouTube<\/strong><\/a>\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"noopener\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Twitter<\/strong><\/a>\u00a0for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">news<\/a>\u00a0and updates.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korea\u00a0Financial Services Commission (FSC) issued new guidelines for crypto lending services. The rules aim to protect investors and clarify local exchange operations.\u00a0 Under the new framework, leveraged loans exceeding collateral value are prohibited. Interest rates are capped at 20%. Additionally, lending is allowed only for the top 20 cryptocurrencies by market capitalization or coins<\/p>\n","protected":false},"author":36,"featured_media":36524,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[657,2],"tags":[7137,9347,15268,23374,5760,23373,23371,6866,23372,12765],"class_list":["post-50199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-en","category-news","tag-crypto-exchanges","tag-crypto-lending","tag-crypto-loans","tag-daxa-oversight","tag-digital-assets","tag-fsc-rules","tag-interest-rate-cap","tag-investor-protection","tag-leverage-ban","tag-south-korea-regulation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea Caps Crypto Loan Interest at 20%, Bans Leverage - Coin Engineer<\/title>\n<meta name=\"description\" content=\"South Korea limits crypto loan interest to 20% and bans leveraged lending, applying rules to top cryptocurrencies on licensed exchanges.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-crypto-loan-20-percent-leverage-ban\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea Caps Crypto Loan Interest at 20%, Bans Leverage - 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