Financial organizers in South Korea are planning to issue guidelines about lending services in the cryptocurrency next month in an attempt to tighten supervision and protect investors amid increasing concerns about supported encryption products.
Financial Services Committee (FSC) and Financial Supervision Service (FSS) on Thursday Declare The formation of a joint work team to develop an organizational framework for encryption lending, according to the local YONHAP news agency (YNA). This step follows the new lending services introduced by Excues Corean Exchange and Bithumb.
According to YNA, Bithumb allowed users to borrow up to four times their guarantees, while UPbit has provided loans up to 80 % of the value of user assets.
The business squad seems to be a response to the lack of clear guarantees for investors, which raises a warning to possible losses due to rapid market fluctuations.
South Korea tightens the supervision of encryption lending
According to what was reported, the work squad will include representatives from the FSC, FSS and Digital Asset Exchand all. Daxa is a self -regulatory organization formed by the five major encryption exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit and Gopax.
The work squad will consider international rules, traditional stock market regulations and the complications of the local encryption market to form encryption lending instructions.
These guidelines are expected to cover the limits of leverage, user eligibility and assets, risk disclosure and transparency requirements for relevant digital asset activities.
The authorities also asked the stock exchanges to review high -risk and legal services, such as those that provide excessive lending services or FIAT.
The new rules are expected to form the basis for future encryption legislation and reflect the batch of the broader government to increase accountability in the area of digital assets.
Related to: The South Korea Court is cleansing WeMade Ex-CEO in the WEMIX manipulation case
Korea Bank to launch the virtual assets committee
The establishment of the lending squad follows a transition from the South Korean Central Bank to convert the research and development teams of the Central Bank of Central Bank (CBDC) to a virtual asset team It covers a wider mandate.
Korea Bank said the virtual asset team will also be assigned to respond to discussions about Stablecoins and other encryption assets. It will work with the government during the legislative process.
The formation of the committee was announced with the rise of the shares of the South Korea Bank after carrying out movements related to the nails.
In June, Google Financing data showed companies like Kakao Bank, Kookmin Bank and Korea Industrial Bank It increased by 10 % to 19 % After registration of Stablecoin brands.
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