South Korean Financial Regulatory Authority Introduces Virtual Asset Loan Service Guidelines, Prohibits Over-Leveraging

By: theblockbeats.news|2025/09/05 11:32:28
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BlockBeats News, September 5th, according to Newsprime report, South Korea's financial regulatory authorities have introduced the first virtual asset loan service guide. Due to intensified exchange competition leading to increased investor risks, the regulators have completely banned leverage and cash loans, established individual limits and fee caps, and prevented similar short-selling behaviors. On the 5th, the Financial Services Commission of South Korea announced that it will implement a self-regulatory Virtual Asset Loan Service Guide developed by the Financial Supervisory Service and DAXA. The new guide focuses on three core aspects: service scope restriction, user protection, and market stability. The guide explicitly prohibits over-leveraging and Korean won cash loans, requiring exchanges to use their own assets to provide services and prohibiting third-party trusteeship or indirect lending models.

Regarding the enhancement of user protection measures, first-time users must complete DAXA's online education and suitability test, with loan limits ranging from 30 million to 70 million Korean won based on trading experience differences; advance notice is required before forced liquidation risks occur, and additional margin deposits are allowed; the annual interest rate must not exceed 20%, and it is mandatory to publicly disclose the lending status and liquidation cases for each currency. In terms of market stability measures, the loan target is limited to the top 20 assets by market capitalization or assets listed on three or more Korean won exchanges, excluding trading warning types and suspicious currencies; internal control mechanisms are required to prevent market fluctuations caused by excessive concentration of specific assets.

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On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.


2025 Full-Year Financial Highlights


Revenue: Expected to be between $39 million and $41 million, reaching a new company high.


Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.


Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.


Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.


Core Consumer Food Business Performance


In 2025, DDC's core consumer food business maintained strong operational performance.


The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.


In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.


Bitcoin Reserve Update


In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.


As of December 31, 2025: The company holds 1,183 BTC.


As of February 28, 2026: Holdings increased to 2,118 BTC


Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC


DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."


Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation


About DDC Enterprise Limited


DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.


The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.


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