Binance, the world's largest virtual asset exchange, is offering futures products that allow for 50x leverage on Samsung Electronics and SK Hynix, and up to 150x leverage on the KOSPI index.

This is an unprecedented derivative product that allows investors to apply up to 50x additional leverage to KORU, a 3x leveraged ETF tracking the KOSPI listed on the New York Stock Exchange.

While a 1% rise in the KOSPI can yield a profit of up to 150%, even a slight decline can result in the total loss of the principal investment.

According to the virtual asset industry, Binance began supporting the trading of KORUUSDT, which allows up to 20x leverage on KORU, on June 22.

Subsequently, on June 26, the exchange listed an additional product allowing up to 50x leverage on KORU, effectively enabling 150x leverage on the KOSPI.

This follows the launch of SAMSUNGUSDT, SKHYNIXUSDT, and HYUNDAIUSDT on June 2, which allowed for 20x leveraged investments in Samsung Electronics, SK Hynix, and Hyundai Motor Company, respectively. The new products were introduced following a surge in investor interest.

Binance has currently increased the maximum leverage for SAMSUNGUSDT and SKHYNIXUSDT to 50x as well.

There are no specific investment restrictions.

Anyone with a bank account capable of KRW deposits and withdrawals can purchase Tether (USDT) on domestic virtual asset exchanges like Upbit or Bithumb and transfer it to Binance, a stateless exchange, to trade.

Large sums of money have already been poured into these high-risk products, which are unimaginable in the domestic stock market, and it is estimated that a significant portion of these investors are from South Korea.

TradingView reported that the trading volume for KORUUSDT exceeded 1.1 trillion KRW between its listing on June 22 and June 26.

The cumulative trading volume for SKHYNIXUSDT from June 2 to June 26 exceeded 6.42 billion USD, approaching 10 trillion KRW.

Critics point out that because Binance operates in a legal gray area, there is an urgent need for consumer protection safety nets in case of catastrophic financial accidents.

Financial authorities in developed nations, including the United States, Japan, and the United Kingdom, have already blocked their citizens from signing up for Binance.

An official from a domestic exchange criticized the situation, stating, "Binance is reaping the benefits of the domestic stock market boom in a regulatory blind spot," adding, "If you look closely, it is nothing short of a lawless gambling den."

Reported by Kwon Ae-ri | Video by Na Hong-hee | Graphics by Lee Jung-ju | Produced by SBS Digital News