Global cryptocurrency exchange Binance on August 14 added a batch of perpetual futures products based on South Korean listed stocks. Naver, LG Electronics, Samsung Electro-Mechanics, Hanmi Semiconductor, and the KODEX 200 exchange-traded fund (ETF) are among the newly supported underlying assets.

The newly listed products allow up to 20x leverage and, like crypto assets, can be traded 24 hours a day without holidays. During the initial listing period, trading was partially accessible even to accounts that had completed know-your-customer (KYC) verification under Korean names, but access for Korean accounts has since been blocked.

The block on Korean trading was not made at the official request of South Korean financial authorities but was a decision Binance made on its own. Binance has been rolling out perpetual futures products based on Korean stocks for several months.

On June 2, the exchange launched futures tracking Samsung Electronics, SK Hynix, and Hyundai Motor, each with 20x leverage. On June 22 of the same month, it also listed a futures product tracking KORU, a 3x leveraged KOSPI ETF listed on the New York Stock Exchange. The products launched in June have since been expanded to maximum leverage of 50x.

Beyond Binance, overseas crypto exchanges MEXC and XT.com have also listed perpetual futures based on Naver and LG Electronics, offering up to 20x leverage. All of these exchanges are unregistered platforms that have not completed formal registration in South Korea.

Perpetual Futures Product Overview

ExchangeUnderlying AssetsMax LeverageLaunch DateBinanceNaver, LG Electronics, Samsung Electro-Mechanics, Hanmi Semiconductor, KODEX 200 ETF20xAugust 14, 2026BinanceSamsung Electronics, SK Hynix, Hyundai Motor50xJune 2, 2026 (launched at 20x, later expanded)BinanceKORU (3x leveraged KOSPI ETF)20xJune 22, 2026MEXC, XT.comNaver, LG Electronics, etc.20xCurrently listed

Note: Binance’s June-launched products debuted at 20x leverage and were later expanded to 50x. KORU is an ETF listed on the New York Stock Exchange.

Overseas Derivatives Proliferate Amid Regulatory Gaps

The backdrop to overseas exchanges including Binance successively launching high-leverage derivatives based on Korean stocks is a blind spot in domestic regulation. Perpetual futures are derivatives with no expiration date, structured to track the price of the underlying asset while allowing positions to be maintained without a separate settlement point.

Under South Korea’s Capital Markets Act, the provision of derivatives based on domestic stocks by a crypto exchange—rather than a licensed securities firm—is not clearly subject to regulation. In particular, exchanges based overseas fall outside the direct supervisory scope of South Korean financial authorities, making effective sanctions difficult.

Even though trading has been blocked for Korean accounts, the possibility of trading through workarounds remains. Given the nature of the crypto market, users frequently circumvent regulations through virtual private networks (VPNs) or accounts registered under foreign names.

Investor Protection Concerns

The spread of high-leverage products based on Korean stocks at overseas exchanges raises significant concerns from an investor protection standpoint. When domestic investors trade on unregistered overseas exchanges, there are virtually no domestic legal remedies available in the event of disputes.

Additionally, the 24-hour trading structure could distort the price discovery function of the Korean stock market. While the underlying domestic stocks only form prices during regular trading hours, overseas derivatives markets move around the clock, potentially creating price gaps before and after the domestic market opens.

South Korean financial authorities have maintained that overseas crypto exchanges’ business activities targeting domestic users constitute unregistered operations under the Act on Reporting and Using Specified Financial Transaction Information (the “Specific Financial Information Act”). However, in the case of these perpetual futures products, the regulatory boundary has become ambiguous because the underlying assets are domestic stocks rather than crypto assets.

A crypto industry insider said, “The fact that overseas exchanges have chosen Korean stocks as underlying assets is evidence of just how strong demand is for the Korean market,” adding that “if the regulatory gap persists, similar products are highly likely to spread further.”