South Korea's cryptocurrency lending booms, regulators increase supervision

The Korea Financial Services Commission has implemented strict cryptocurrency loan rules, setting an annual interest rate cap of 20%, and banning leveraged loans that exceed the value of the collateral. Earlier, the commission issued $1.1 billion in loans to 27,600 investors in July, with 13% facing mandatory liquidation. Only the top 20 cryptocurrencies or cryptocurrencies listed on three Korean exchanges are eligible for loan application, and first-time borrowers must complete mandatory training. Meanwhile, the South Korean government lifted a seven-year ban on venture capital investments against cryptocurrency companies, indicating increasing regulatory acceptance while emphasizing market stability and investor protection.