South Korean Financial Services Commission (FSC) has released a new guide for credit services of central crypto currency exchanges. With the regulation, which entered into force as of September 5, the interest rate was limited to 20 percent and leveled loans exceeding the guarantee value were banned.
New Rules in Crypto Money Loans
ChosunGuide according to the information provided by crypto currency The interest rate in loans will not exceed 20 percent. The amounts of borrowing in amounts exceeding the guarantee will not be allowed and the products that require cash repayment will be prohibited. Companies will only be able to provide these services with their own resources. In addition, the arrangements will be prevented from walking around the arrangements by applying indirect methods through third parties.
The credit limit of users will be determined according to the transaction history and experience. When the risk of liquidation occurs, the borrowers will be informed in advance. The audit task is formed by local exchanges Digital Asset Stock Exchange Union‘What (DAXA) was given. FSC plans to enact the rules according to the results obtained from the application.
Credit services will only be limited to the top 20 crypto currencies according to the market value. In addition, at least three licensed local stock exchanges can be included in the coverage. However, any of these crypto coins crypto currency exchange If it is included in the warning category by, it will be stopped immediately to give credit via Coin.
Compliance of crypto currency exchanges
Regulation, especially Upbit And Bithumb It was implemented after the credit services initiated by large stock exchanges such as. On August 19, the FSC instructed local stock exchanges to temporarily stop their credit activities. With the new guide, a permanent framework was created in this area.
FSC announced that it has been prepared with international examples and is compatible with global practices. Like this South Koreahas taken a comprehensive step to increase user protection and market stability in crypto currency loans.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
