The Financial Services Commission and Financial Supervisory Service aim to tighten oversight and safeguard investors amid rising concerns over leveraged crypto products.
South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) announced plans to release guidelines on cryptocurrency lending services next month, following concerns about high-leverage products offered by exchanges like Upbit and Bithumb. A joint task force will develop a regulatory framework, addressing issues such as leverage limits and risk disclosures. This move reflects a broader effort to enhance accountability in the digital asset space and comes alongside the Bank of Korea's establishment of a Virtual Asset Team to oversee discussions on stablecoins and other crypto assets.