PANews reported on September 5th, according to Newsprime, that South Korea's financial regulators have issued their first guidelines for virtual asset lending services. Due to increased competition among exchanges and heightened investor risks, regulators have completely banned leveraged and cash lending, and set individual limits and fee caps to discourage practices similar to short selling. The Financial Services Commission (FSC) of South Korea announced on the 5th that it will implement the self-regulatory "Virtual Asset Lending Guidelines," developed by the Financial Supervisory Service and DAXA. The new guidelines focus on three key areas: service scope restrictions, user protection, and market stability. They explicitly prohibit excessive leveraged lending and Korean won cash lending, require exchanges to use their own assets to provide services, and prohibit third-party entrustment or indirect lending models. To strengthen user protection measures, first-time users must complete DAXA's online education and adaptability test. A lending limit of 30 to 70 million won (KRW) is set based on trading experience. Advance notification is required before any forced liquidation risk occurs, and margin calls are permitted. The annual handling fee rate cannot exceed 20%, and public disclosure of the current status of lending and liquidation cases for each currency is mandatory. Regarding market stabilization measures, lending targets are limited to the top 20 assets by market capitalization or listed on three or more Korean won exchanges. Trading warning instruments and currencies suspected of abnormal trading are excluded. Internal control mechanisms are also required to prevent market fluctuations caused by excessive concentration in specific currencies.PANews reported on September 5th, according to Newsprime, that South Korea's financial regulators have issued their first guidelines for virtual asset lending services. Due to increased competition among exchanges and heightened investor risks, regulators have completely banned leveraged and cash lending, and set individual limits and fee caps to discourage practices similar to short selling. The Financial Services Commission (FSC) of South Korea announced on the 5th that it will implement the self-regulatory "Virtual Asset Lending Guidelines," developed by the Financial Supervisory Service and DAXA. The new guidelines focus on three key areas: service scope restrictions, user protection, and market stability. They explicitly prohibit excessive leveraged lending and Korean won cash lending, require exchanges to use their own assets to provide services, and prohibit third-party entrustment or indirect lending models. To strengthen user protection measures, first-time users must complete DAXA's online education and adaptability test. A lending limit of 30 to 70 million won (KRW) is set based on trading experience. Advance notification is required before any forced liquidation risk occurs, and margin calls are permitted. The annual handling fee rate cannot exceed 20%, and public disclosure of the current status of lending and liquidation cases for each currency is mandatory. Regarding market stabilization measures, lending targets are limited to the top 20 assets by market capitalization or listed on three or more Korean won exchanges. Trading warning instruments and currencies suspected of abnormal trading are excluded. Internal control mechanisms are also required to prevent market fluctuations caused by excessive concentration in specific currencies.