South Korea's financial regulators plan to introduce stringent regulations for token lending services, addressing high collateral ratios and market stability concerns.
South Korea's financial regulators are set to implement stock market-equivalent regulations on token lending services by crypto exchanges. Bithumb currently allows lending up to 400% of collateral value, while Upbit permits Bitcoin lending up to 80%. Authorities are exploring these measures as part of the second phase of virtual asset legislation, viewing such services as akin to short selling.