Korea Orders a Full Stop on Crypto-Collateral Lending: What It Signals for Stablecoins, AI, and Asia’s Fintech Map
🔑 Key Takeaways Korea’s Financial Services Commission (FSC) has ordered a halt on new crypto-collateral lending services , citing user-protection and leverage risks; existing loans may see limited continuity under guidance. The move lands under Korea’s Virtual Asset User Protection Act (effective July 19, 2024) , which strengthened supervision, custody, and unfair-trading rules. Stablecoins are next : policymakers are preparing a won-backed stablecoin bill (expected October 2025) while the Bank of Korea (BoK) urges a gradual, bank-led rollout . Regionally, Singapore and Hong Kong already run detailed stablecoin regimes, and the EU’s MiCA is live— Korea risks falling behind unless it clarifies a bank-grade path for on-chain finance . AI ambitions vs. crypto caution : Seoul is pouring funds into AI and chips, yet blockchain rails (and crypto incentives) are key for verifiable data and programmable settlement —a policy contradiction Korea must resolve. 🗞 Main Story ...