South Korea's financial regulators have introduced new guidelines for virtual asset lending services, prohibiting excessive leverage and cash lending. The Financial Services Commission (FSC) announced the self-regulatory "Virtual Asset Lending Guidelines," developed with the Financial Supervisory Service and DAXA, to address increased competition and investor risks. The guidelines restrict service scope, enhance user protection, and aim for market stability. Key measures include banning leveraged and Korean won cash lending, requiring exchanges to use their own assets, and prohibiting third-party lending models. User protection is strengthened with mandatory online education and adaptability tests for first-time users, and lending limits set between 30 to 70 million won based on trading experience. The guidelines also cap annual handling fees at 20% and mandate public disclosure of lending and liquidation statuses. Market stabilization efforts limit lending to the top 20 assets by market capitalization or those listed on three or more Korean won exchanges, excluding instruments suspected of abnormal trading.