South Korea will promote “virtual currency short selling” legislation and plan to introduce market-level regulation of stocks
TechFlame
2025-07-22 02:43
TechFlame2025-07-22 02:43
English
TechFlame reports that, according to Edaily, South Korea's financial regulators plan to strictly supervise the “currency leasing” services of virtual currency exchanges and will introduce regulatory measures comparable to the stock market in the second phase of virtual asset legislation. Currently, major exchanges such as Upbit and Bithumb have introduced services that allow investors to borrow up to 4 times the guaranteed value of virtual currency, essentially forming a trading structure similar to short selling stocks. As 90% of South Korea's virtual asset market consists of individual investors, regulators are concerned that excessive leverage could pose serious risks. Experts called for temporary guidelines to be introduced as soon as possible before legislation is completed (which is expected to take 1-2 years) to limit the size of leverage and set eligibility conditions to prevent investor losses.