Debt-ridden crypto investors could receive an unexpected lifeline.

Courts in South Korea will use a new set of guidelines in rehabilitation hearings to write off people’s crypto debts in an attempt to stop citizens from going bankrupt.

The new rules will see three courts, opened this month in the cities of Daejeon, Daegu, and Gwangju, exclude debts incurred from stock or cryptocurrency investments from liquidation calculations.

And this, in turn, will reduce the overall amount debtors need to pay their creditors in personal rehabilitation proceedings, South…