South Korea's financial regulators to crack down on offshore perpetual futures
- —Regulators will scrutinize offshore platforms offering perpetuals on Korean stocks and indices
- —Many products offer 10–200x leverage; at 150x a 0.66% index move wipes out the entire margin
- —Such perpetuals are not permitted in South Korea and users fall outside local legal protection
- —Soliciting Korean clients via referral codes may lead to criminal complaints
Why it matters: The crackdown pressures offshore crypto platforms selling synthetic Korean equity products and curbs local traders' access to high leverage.
Source: Bloomingbit