New Korean Rules Shield Crypto Users from Risky Lending Practices
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South Korean regulators have stepped in to protect cryptocurrency investors from high-risk lending products. New guidelines from the Financial Services Commission (FSC) introduce a suite of user protection measures.
Key changes include a ban on dangerous leveraged loans and a 20% annual interest rate cap to prevent predatory lending. To further safeguard users, platforms must now assess a user’s experience before setting lending limits and provide warnings before liquidation.
The rules also ensure that only established, mainstream cryptocurrencies can be used for lending services.
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