Financial authorities and industry to establish self-regulation for virtual asset lending and margin trading

YM Lee

Summary

The financial authorities announced that they are working with the industry to establish self-regulation for virtual asset lending and margin trading.
The authorities and the industry stated that they will form a task force (TF) to discuss self-regulatory measures.
Self-regulation is expected to include short selling, margin trading limits, and investor education such as the establishment of qualification requirements related to investment.

The financial authorities plan to develop self-regulatory measures for virtual asset (cryptocurrency) lending and margin trading in cooperation with the industry.

According to the industry on the 30th, the financial authorities and the financial sector recently discussed concerns regarding virtual asset lending services and leveraged investments with domestic KRW-based virtual asset exchanges.

The authorities and the industry will form a task force (TF) to discuss self-regulation. Since the second stage of virtual asset legislation will take time, there is a need for industry self-regulation in the interim. Self-regulation is expected to cover items such as short selling and margin trading limits, investor education, and the establishment of qualification requirements.