South Korea plans to release guidelines on cryptocurrency lending services next month to protect investors from leveraged crypto products. The Financial Services Commission and Financial Supervisory Service announced the formation of a joint task force in response to new services introduced by exchanges Upbit and Bithumb.

The task force includes representatives from the FSC, FSS, and the Digital Asset eXchange Alliance to develop regulatory guidelines for crypto lending, covering leverage limits, risk disclosures, and transparency requirements. Exchanges were asked to review high-risk services like excessive leverage. These rules are expected to lay the foundation for future crypto legislation.

The Bank of Korea is launching a virtual asset committee by converting its existing CBDC research teams. The new team will cover a wider mandate, respond to discussions on stablecoins, and work with the government during the legislative process. South Korean bank stocks surged after companies registered stablecoin trademarks, with stocks rising by 10% to 19%.

Read more at Cointelegraph: South Korea to Issue Crypto Lending Guidelines in August