South Korea’s Financial Services Commission has imposed new regulations on virtual asset lending, capping interest rates at 20% annually and banning leveraged loans exceeding collateral value. Exchanges must use their own assets for lending, and eligibility is limited to top-ranked cryptocurrencies. The guidelines aim to mitigate risks after significant growth in crypto lending and investor harm from forced liquidations. The rules also include mandatory training for borrowers and reporting of liquidation data by exchanges.