Financial authorities are clamping down on new short selling of cryptocurrencies, citing investor protection concerns. Edaily reports that exchanges will no longer be permitted to offer new lending services specifically designed to facilitate short selling. This administrative guidance aims to mitigate the risks associated with highly leveraged crypto products. The authorities fear that the current infrastructure lacks the necessary safeguards, potentially exposing users to significant financial harm and destabilizing the overall market. The focus is on preventing damage before it occurs, rather than reacting after losses have been incurred. Regulators have warned that continued offerings of these services, despite the guidance, will trigger supervisory actions. This could include on-site inspections and further penalties, underscoring the seriousness with which they view this issue. The move reflects a growing global trend of increased regulatory scrutiny within the digital asset space, prioritizing consumer protection and market stability. ```