South Korea is actively implementing new measures to regulate the crypto industry, including changes to crypto lending rules, stablecoin legislation, and investment guidelines.
Key Changes in Crypto Lending Rules
South Korea has banned leveraged cryptocurrency loans, meaning that platforms can no longer offer such loans. To stop unfair lending practices, the FSC has set a limit on interest rates for crypto loans at 20%, creating a fairer lending environment for consumers.
New Regulations for Stablecoins
Last month, the FSC announced plans to submit a stablecoin bill to the National Assembly in October. The proposed legislation aims to regulate the creation and maintenance of stablecoins, ensuring they are backed by reliable collateral. Issuers will need to implement robust internal systems to manage both financial and technical risks.
Guidelines for Crypto Investment
The FSC also plans to issue new guidelines for crypto investment in the third quarter of this year, signaling the country's intention to end the de facto ban on institutional investment in digital assets and improve the transparency of new crypto exchange listings.
The new rules, upcoming changes, and guidelines from South Korea reflect the country's commitment to establishing a reliable and secure regulatory environment for the crypto market, ensuring protection for both retail and institutional investors.
