South Korean court: 20% interest cap does not apply to Bitcoin loans
- —The 2020 contract covered 30 BTC at 5% monthly, later cut to 10% a year
- —Court: interest caps apply only to loans of money, not Bitcoin
- —The borrower must return 30 BTC plus interest calculated in Bitcoin
- —South Korea's current cap on money loans is 20% a year
Why it matters: The ruling sets a precedent that crypto lending sits outside money-lending rules, leaving BTC borrowers unprotected by interest caps.
Source: TokenPost
More on this
Regulation · Oct 12Jeonbuk Bank becomes first South Korean bank to offer won loans backed by Bitcoin
Regulation · Oct 17Korean court blocks stock delisting: does it apply to crypto exchanges?
Regulation · Oct 6South Korean court: holding client assets after exchange shutdown is still a crypto business