South Korea will limit interest rate cap on cryptocurrency lending to 20% ban leveraged lending

According to ChainCatcher, South Korea's financial regulators have released new guidelines for lending services for local cryptocurrency exchanges to strengthen investor protection, according to Theblock. Under the new regulations, the cryptocurrency lending rate cap is set at 20%, and leveraged lending businesses exceeding the value of collateral are explicitly prohibited. In addition, the guide also stipulates that only the top 20 cryptocurrencies with market caps, or cryptocurrencies traded on 3 and above platforms, can be used for lending services. These measures are designed to regulate the Korean cryptocurrency lending market and reduce investor risks.