Korean central bank chief warns leveraged crypto trading threatens financial system

The governor of the Bank of Korea, Lee Ju-yeol [Lee Ju-yeol], said that trading digital assets with leverage threatens the country’s financial system. The report comes from Korea Herald.

“Excessive levels of leveraged cryptocurrency trading expose families to the risk of financial losses, given the volatility of this market,” the governor of the Bank of Korea said.

Lee Ju-yeol said he would monitor transactions by financial institutions linked to margin trading of digital assets. He also proposed curbing the amount of new lending to prevent defaults that could adversely affect the country’s banking system.

23.6% of South Korean students invested in cryptocurrencies, of which 68.3% experienced psychological strain due to volatility.

In late April, local media reported that young people in South Korea are distracted from work by Bitcoin charts.

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