South Korea will limit crypto lending interest rate cap to 20%, ban leveraged lending

South Korea’s financial regulators have released new guidelines for lending services for local cryptocurrency exchanges to strengthen investor protection, according to The Block. Under the new regulations, the crypto lending rate cap is set to 20%, and leveraged lending businesses that exceed 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.