South Korea to Promote Legislation on "Virtual Currency Short Selling", Introducing Regulatory Measures at the Level of the Stock Market

ChainThink reports: According to Edaily, the South Korean financial regulatory authorities plan to implement strict regulations on "coin leasing" services of virtual currency exchanges, introducing regulatory measures comparable to those in the stock market in the second phase of virtual asset legislation. Currently, major exchanges such as Upbit and Bithumb have launched services allowing investors to borrow virtual currencies up to four times the value of their collateral, effectively creating a transaction structure similar to short selling in the stock market. Given that 90% of the South Korean virtual asset market is composed of individual investors, the regulatory authorities are concerned that excessive leverage may pose significant risks. Experts have called for the prompt introduction of temporary guidelines before the completion of the legislation (expected to take 1-2 years), limiting leverage levels and setting participation qualification criteria to prevent investor losses.